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Much of this week’s attention has been on Nvidia’s earnings, and the chipmaker delivered the sort of numbers of investors had been hoping for. US index futures initially wobbled before moving higher overnight, with the results providing a fresh lift to the AI trade
Trading conditions remain challenging for Nasdaq 100. Over the past five trading sessions, the index has declined by nearly 3.2%, reinforcing a meaningful bearish bias in the short term. Selling pressure has persisted even after the release of the Federal Reserve's minutes, while bond market yields continue to trade at elevated levels.
This week, we have seen further warning signs emerge from crude oil and bond markets. Equity investors have finally started to respond by going a bit defensive. The Nasdaq 100 was down about 1.5% today, with other US indices and European markets also lower. The overcrowed AI trade is losing momentum as yields press higher.
Risk appetite turned a bit sour on Thursday morning with European markets and US index futures joining the sell-off in Japan overnight. It looked like US indices were surrendering the previous session’s advance as renewed weakness across the semiconductor sector weighed on sentiment. Investors will turn their attention to Netflix, which is due to release its quarterly results after the closing bell.
The trading week is coming to an end, and the Nasdaq 100 has shown important recovery attempts in the short term. Over the last 2 sessions, the index has posted a gain of just over 2.6%, trying to maintain some confidence in its recent movements.
The Nasdaq 100 is searching for its next catalyst. With Magnificent Seven earnings about to begin, attention now turns to whether results and guidance can justify the rally.
Today looks to be the most important of the week for much of the financial markets. The US dollar eased lower amid potential intervention by Japan, while US stock futures traded mixed with ahead of today’s closely watched non-farm payrolls report. Investors were reluctant to take on fresh risk before one of the month’s most important economic releases, and ahead of a long weekend for US investors.
Technology stocks remained under pressure on Friday, extending a sell-off that has spread from Wall Street into Europe and Asia. The retreat reflects a combination of factors. After a remarkable rally in recent months, investors have become increasingly sensitive to stretched valuations, rising infrastructure costs associated with AI, and a more hawkish outlook for US monetary policy. While some degree of profit-taking was perhaps inevitable, the latest moves also raise broader questions about whether expectations for the sector have simply run too far ahead of commercial reality.
The week continues, and one of the main factors starting to stand out in the Nasdaq 100 is the recent loss of momentum near record highs. This move comes after a strong recovery at the beginning of the week and shows that buying pressure has not yet stabilized in the short term.
After starting the session with a relevant bearish bias, the Nasdaq 100 has managed to regain short-term strength and is up more than 2.5% on the day. This move has brought back a mild bullish tone to the market, although the broader backdrop remains sensitive.
Dip-buying has always been the name of the game in the stock markets. Will we see yet another example of that today, after a weak US jobs report sent stocks lower? We are hesitant to turn bearish on the markets just yet and keeping the bullish Nasdaq 100 forecast intact.
Nasdaq 100 forecast: Traders await fresh catalysts and eye August tariff risk. AI optimism and solid earnings from chipmakers have supported gains, but is momentum fading? Fed rate cut uncertainty rises on more stronger data (retail sales, Philly Fed, Jobless Claims), underpinning the dollar
