Nasdaq 100, Dow Jones, S&P 500 News: Nvidia’s Stellar Earnings Propel Tech Stocks

James Hyerczyk
Updated: Feb 22, 2024, 15:27 UTC

Key Points:

  • Nvidia reports a 265% year-on-year revenue increase, heavily influencing Nasdaq-100.
  • AI and semiconductor stocks, like Taiwan Semiconductor, gain following Nvidia's earnings.
  • Moderna's profit rise contrasts with EV sector challenges, affecting market trends.
Nasdaq-100 Index, S&P 500 Index, Dow Jones

In this article:

Nvidia’s Ongoing Revenue Growth and Market Influence

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%.

AI and Semiconductor Stocks Experiencing a Surge

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.

Short-Term Forecast for the Nasdaq-100 Index

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.

Technical Analysis

Daily E-mini Nasdaq-100 Index

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.

About the Author

James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.

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