Nasdaq 100: Tech Stocks Rally Today as Traders Await Nvidia Earnings Forecast

U.S. Stocks Rebound as Earnings Take Center Stage

As investors moved their attention to corporate earnings and moved away from the tariff chaos, U.S. equities saw a resurgence in value on Wednesday. The S&P 500, Nasdaq Composite and Nasdaq-100 all had similar price movement in this bounce, however, the tech-focused indexes showed relative strength after being sold for the past several weeks. The main highlight of the trading day will come after market close when Nvidia announces earnings, which the entire market is now viewing as a pivotal event in the AI trade as well as the overall recovery of technology.

At 18:15 GMT, the blue chip Dow is trading 49484.55, up 310.05 or +0.63%. The benchmark S&P 500 Index is at 6941.11, up 51.04 or +0.74% and the Nasdaq Composite is trading 23125.825, up 262.143 or +1.15%.

AI Spending Fears May Be Overstated but Nvidia Will Have the Final Say

February has been marked by a rollercoaster ride of emotions surrounding whether or not big tech companies will see a return on their investment into AI technologies. Given the fears of widespread disruption due to the growing influence of AI across various sectors like software, commercial real estate, trucking and logistics, I think today’s rally suggests that some of these concerns are unwarranted. Strong Nvidia earnings could dampen these worries. Until then, some investors may refrain from committing more capital to the sector.

Salesforce and Snowflake Earnings Could Set the Tone for Software Recovery

The S&P 500 software and services index gained 2.3% on Wednesday, but is still down 21.0% year-to-date. Software companies Salesforce and Snowflake are expected to report their earnings after the market close, creating an opportunity for them to affect the direction of the overall software and technology sectors, including the Nasdaq-100. The technology-focused Nasdaq-100 has taken the biggest hit during the downtrend in the software sector and is looking for signs from these two companies regarding the future of the software sector.

Axon Surges 21% While Workday, Lowe’s and GoDaddy Disappoint

In the fourth quarter, Axon Enterprise’s (AXON) earnings beat expectations which helped propel shares up 21.4%, contributing with one of the session’s strongest performances. Workday’s (WDAY) forward guidance on fiscal 2027 subscription revenue came in below expectations, leading to a 0.7% decline in shares.

On the downside, Lowe’s (LOW) provided guidance for annual sales and profits that were lower than expected. Shares fell 4.5%. GoDaddy (GDDY) experienced a major decline after issuing guidance for annual revenue that came in below Wall Street’s expectations. Shares dropped 15.9%.

Nvidia Earnings After the Close Could Flip the Nasdaq-100 Trend

Nvidia’s (NVDA) earnings report after the close could help determine if the Nasdaq-100 will break out to new highs or roll over. The market is anxiously awaiting this news.

Technically, the March E-mini Nasdaq-100 Index is climbing toward the 50-day moving average at 25465.25 after breaking out to the strong side of a trend line at 25129.25. The index still has to overcome a pair of pivots at 25294.50 and 25411.75 as it builds momentum to challenge the 50-day MA. Overtaking this indicator will put a pair of tops at 26027.75 and 26349.00 on the radar. The futures contract hasn’t closed over the 50-day MA since February 2, so overcoming it with conviction could flip the short-term trend to bullish.

More Information in our Economic Calendar.