
S&P 500, Nasdaq, Dow Forecast: Rising Yields Test Rally Ahead of Nvidia, Fed 8 22 2026
S&P 500, Nasdaq and Dow test key technical levels as momentum fades, raising the risk of a deeper correction heading into a pivotal week.
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S&P 500, Nasdaq and Dow test key technical levels as momentum fades, raising the risk of a deeper correction heading into a pivotal week.

Is it a bubble or just a mania? While AI holds a lot of promise the valuations are becoming untethered from historical norms but that doesn’t necessarily mean that prices need to come down.

Major U.S. indices enter Fed week at pivotal technical levels as weakening momentum raises the stakes for the next breakout.

The Trump Pump has continued for much of the past three months but the focus for next week shifts to revenue potential from AI and tech leadership with Google and Tesla reporting earnings next Wednesday.

Judging by the bearish candle on the Nasdaq 100, a weaker start to the week shouldn’t come as surprise. Friday’s sharp sell-off ensured that tech-heavy indices, particularly the Nasdaq 100, ended the week in the red.

Last week saw the technology sector take a plunge, before dip buyers stepped in on Friday to save the day, helping to fuel a late rally on Wall Street. In Europe, the major indices also came off their earlier lows to close either flat or in the positive. In the week ahead, the global macro calendar is lighter, with US market closed on Tuesday in observance of Veterans Day.

The week ahead is set to be a busy one for the earnings calendar, while the macro calendar is again set to be quieter with the ongoing US government shutdown delaying the release of data there. Elsewhere, UK CPI on Wednesday and Global PMIs on Friday should bring about a bit of volatility for European markets. Among the indices to watch is the German DAX index this week, with the release of a few major company results to set the tone, including SAP in mid-week.