The Nasdaq composite index closed above the 4,000 mark in New York yesterday, the first time it has breached that level in more than two months, as investors bought shares of the companies that are expected to post the strongest earnings growth. But blue-chip indicators fell.

The Nasdaq's return to the 4,000 mark was the latest milestone in a gradual recovery from the steep sell-off in April that knocked it as much as 37 per cent below its record high.