Despite several concerns, the Nasdaq has been outperforming its fellow benchmarks right from the start of 2015. While weak second quarter earnings season and a continuous slump in crude prices dragged the Dow down by 2% over the last month, the Nasdaq gained nearly 1.2%. It also outpaced the S&P 500, which rose a meager 0.2% over the past month. However, a 4.3% decline in iShares Nasdaq Biotechnology (IBB) dampened the benchmark yesterday.

Meanwhile, some of the major multinationals listed in the index suffered due to foreign exchange headwinds reflected in their dismal second quarter results. Moreover, strong economic data including recovery in second quarter GDP and a strong labor market raised the possibility regarding a rate hike in September, which had a negative impact on the benchmarks recently.

In this volatile scenario amidst the increasing concerns about a rate hike, investors may opt for high yield stocks in order to obtain consistent income.

Economic Rebound

According to the “advance estimate,” the second quarter GDP rose 2.3%, compared to the revised 0.6% growth rate witnessed in the first quarter. Additionally, the personal consumption expenditure (PCE) price index increased at the highest pace in more than three years during the quarter.

Though the recent jobs report from Automatic Data Processing, Inc. (ADP – Analyst Report) indicated a slowdown in labor market, the overall scenario remained positive. The report showed that the private sector generated 185,000 jobs in July, lower than the previous month's tally of 229,000.

Meanwhile, a reading of the Institute for Supply Management's (ISM) services index in July came in better than expected. The ISM Services Index increased to 60.3 in July, the highest level for the index since Aug 2005.

Rate Hike Worries

Renewed concerns regarding a September rate hike had a negative impact on benchmarks including the Nasdaq in the past few sessions. Last Tuesday, Atlanta Fed Reserve president Dennis Lockhart signaled that the Fed is preparing for a rate hike in September. In an interview with The Wall Street Journal, Lockhart said that the given economic scenario is “appropriate” to opt for a rate hike in near future unless the economy witnesses a “significant deterioration.”