Nasdaq 100, Dow Jones, S&P 500 News: Wall Street Climbs as Investors Eye Recovery

Last Week’s Recap

Last week witnessed significant declines, with the S&P 500 and Nasdaq Composite dropping 3.05% and 5.52%, respectively, marking six consecutive days of losses. The Nasdaq notably experienced a 2% drop on Friday, driven by a 10% fall in Nvidia shares, which significantly impacted the broader tech sector. Conversely, the Dow Jones Industrial Average remained relatively stable due to its lower tech exposure.

Earnings and Economic Indicators

This week is pivotal for the markets with major earnings on the horizon. Tech giants such as Tesla, Meta Platforms, and Microsoft are among those scheduled to report. The earnings outcomes could heavily influence market directions. Additionally, significant economic indicators are set to be released, including the GDP figures and the PCE inflation print, the Federal Reserve’s favored inflation gauge.

Sector Movements and Analyst Insights

In premarket trading, various sectors showed movement. Notably, Tesla and other electric vehicle makers saw stock prices drop following price cuts. Verizon’s shares increased after earnings per share exceeded expectations, despite a slight revenue shortfall. Moreover, financial technology stocks and bitcoin-related companies like Riot Platforms and Coinbase experienced gains, responding to market events and analyst ratings.

Market Forecast

Looking ahead, the market’s direction in the short term appears to hinge on the forthcoming tech earnings and economic data. The overall sentiment leans cautiously optimistic, suggesting a potential rebound if the earnings reports meet or exceed expectations. However, the backdrop of economic indicators, particularly the inflation data, will be crucial in determining the market’s next moves. The expectation is moderately bullish, contingent on positive earnings surprises and manageable inflation figures.

Technical Analysis

E-mini Nasdaq-100 Inex futures are edging higher on Monday. The price action suggests investors are squaring positions ahead of this week’s major earnings reports.

Key support is the 200-day moving average at 17289.00, up 108.25 or +0.63%. This indicator is controlling the long-term direction of the market.

Without a support base, we’re not expected much of a rally. The nearest resistance is the 50-day moving average at 18205.29.