Tech Stocks Soar On AI Gains
Fresh Highs in US Stocks
The NASDAQ is on watch today after the index printed fresh record highs yesterday, along with the S&P500 as stocks roar higher on the back of last week’s US jobs report and strong quarterly earnings. Market pricing for a Fed hike this month plunged to less than 20% on the back of Friday’s NFP release. The headline print came in heavily below forecasts with the unemployment rate seen rising and wage growth softening. The knock-on effect has also seen pricing for a December hike falling to around 70% from 90% prior to the data. With oil prices in decline too, equities are enjoying a period of revived risk-on trading.
AI Stocks Soaring
Strong quarterly earnings in the tech sector and renewed excitement around AI stocks are also helping drive the NASDAQ higher here. Marvell Technology saw its shares soaring this week after it unveiled firmly higher revenue targets. Chipmakers in general have seen strong gains recently as AI stocks take centre stage once again. Both Space X and Meta shares are rising this week too amidst revised upward price targets from Goldman and Wells Fargo. Looking ahead, tonight’s FOMC minutes will be in focus though, given the drop in last week’s jobs numbers and recent dip in energy prices, hawkish commentary might be seen as a little outdated at this point.
Technical Views
NASDAQ
The rally in the index has seen price breaking above the 30,806 highs and with momentum studies bullish, focus is on a continued push higher while above that level. Below there, the rising trend line from YTD lows will be the first support area to watch ahead of the deeper 26,860 structural level.
Disclaimer: The material provided is for information purposes only and should not be considered as investment advice. The views, information, or opinions expressed in the text belong solely to the author, and not to the author’s employer, organization, committee or other group or individual or company.
Past performance is not indicative of future results.
High Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 68% and 74% of retail investor accounts lose money when trading CFDs with Tickmill UK Ltd and Tickmill Europe Ltd respectively. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Futures and Options: Trading futures and options on margin carries a high degree of risk and may result in losses exceeding your initial investment. These products are not suitable for all investors. Ensure you fully understand the risks and take appropriate care to manage your risk.
With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.