The current performance of the Nasdaq 100 is being influenced by momentum and micro factors, with Nvidia’s impressive year-to-date share price gain of 98% playing a significant role in driving the index’s gains. Nvidia’s earnings releases have had mixed results in the past, with two out of five previous releases leading to negative performance for the Nasdaq 100. However, ahead of Nvidia’s Q1 earnings release, the Nasdaq 100 has been trading above its 20-day moving average since May 3, signaling a positive trend.
Recent economic data has pointed to a potential slowdown in economic growth, with indicators like the University of Michigan’s consumer sentiment index and the ISM services PMI showing signs of contraction. Despite these macroeconomic concerns, sell-side analysts remain optimistic about future earnings growth for US corporations, as reflected in the Citigroup US earnings revision index.
The current bullish run in Nvidia’s stock price has contributed significantly to the gains in the S&P 500 and Nasdaq 100, with Nvidia being a key player in the AI technology sector. Analysts are expecting Nvidia’s earnings per share to rise in the upcoming quarter, and the technical analysis indicates a positive trend in the stock’s performance.
Looking at the short-term outlook for the Nasdaq 100, the index is currently trading within a minor ascending channel with key support levels at 18,370. A break below this level could signal a bearish trend and expose the index to further downside support levels.
Overall, the Nasdaq 100’s performance is being driven by a combination of microsector factors, like Nvidia’s strong performance, and macroeconomic indicators. Investors are closely watching Nvidia’s upcoming earnings release to gauge the impact on the Nasdaq 100’s performance.
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https://marketpulse.com/indices/nasdaq-100-pay-close-attention-to-nvidia-price-actions-ex-post-earnings-release/kwong