Nvidia is currently reporting a significant increase in revenue, with a 265% rise year-on-year, primarily driven by its expanding artificial intelligence business. This development is not only boosting Nvidia’s shares but is also influencing the broader technology sector, especially the Nasdaq-100 index. The company’s Data Center business, crucial in AI advancements, is showing an impressive 409% increase in sales, emphasizing Nvidia’s dominance in the AI chip market.
At 13:11 GMT, tech-heavy Nasdaq-100 Index futures are trading 17887.00, up 350.24 or +2.00%. Blue chip Dow futures are at 38812.00, up 135.00 or +0.35% and benchmark S&P 500 Index futures are trading 5057.25, up 61.00 or +1.22%.
Following Nvidia’s positive earnings report, related AI and semiconductor stocks are currently witnessing a surge. Companies like Taiwan Semiconductor Manufacturing Company, Super Micro Computer, and ASML are all experiencing notable gains. This trend is highlighting the increasing importance of AI and semiconductor technology in the market. Nvidia’s success is showcasing the growing reliance on AI technologies across various sectors.
Moderna is currently reporting an unexpected profit and revenue increase, contrasting with the downturns for EV companies like Lucid and Rivian, which are facing challenges. While AI and tech stocks are surging, other sectors, such as the EV market, are dealing with production issues and slowing demand.
Considering Nvidia’s strong performance and its significant influence on the Nasdaq-100, a bullish outlook for the short term seems likely. The index, which has been experiencing a downturn, is showing signs of a potential rebound, driven by the robust performance of the tech sector. Nvidia’s earnings beat and the subsequent rise in AI and semiconductor stocks are providing momentum for this positive trend.
However, investors are also closely watching external factors such as the upcoming jobless claims data and existing home sales figures, which could impact market movements. The Federal Reserve’s approach to interest rates continues to be a critical factor in determining the market’s direction.
E-mini Nasdaq-100 Index futures are trading considerably higher on Thursday. The current upside momentum has put the index in a position to change the short-term trend back to up, while placing all-time highs back on the radar.
A trade though 18026.00 will change the main trend to up. Taking out 17372.75 will signal a resumption of the downtrend.
Although the short-term trend is down, the index is still be underpinned by the 50-day moving average at 17212.70 and the 200-day moving average at 15876.73.
James Hyerczyk is a U.S. based seasoned technical analyst and educator with over 40 years of experience in market analysis and trading, specializing in chart patterns and price movement. He is the author of two books on technical analysis and has a background in both futures and stock markets.