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NASDAQ Jumps on Mega Tech Stock Surge

By:
James Hyerczyk
Updated: Mar 30, 2023, 04:34 UTC

Mega Tech stocks drove Wednesday's NASDAQ surge with Amazon, Meta, and Netflix leading the way.

NASDAQ Composite

In this article:

Key Takeaways

  • Mega Tech stocks drive Wednesday’s market surge
  • Dow leads weekly gains with 1.5% increase
  • Nasdaq Composite on track for 13% gain by quarter-end

Overview

In pre-market trading on Thursday, stock futures remained relatively stable. This comes amidst a week of volatile activity for stocks, with the three major indexes experiencing fluctuations.

On Wednesday, the Nasdaq Composite led the way with a gain of 1.8%, followed by the S&P 500 and Dow, which increased by 1.4% and 1% respectively. This marks a rebound from Tuesday’s session, during which all three indexes closed decisively lower.

At 04:00 GMT, blue chip Dow futures are trading 32885.00, down 18 or -0.05%. Benchmark S&P 500 Index futures are at 4055.25, down 2.25 or -0.06% and tech-weighted NASDAQ Composite futures are trading 12942.75, down 22.25 or -0.17%.

Daily NASDAQ Composite Index

Mega Tech Stocks Lead Wednesday’s Market Surge

The boost on Wednesday was mainly due to gains in Mega Tech stocks, with Amazon rising by 3% and Meta and Netflix gaining over 2% each.

The banking sector, which has been closely watched since the collapse of Silicon Valley Bank earlier this month, also performed well. The SPDR S&P Regional Banking ETF (KRE) saw an increase of around 1%.

The fluctuating activity in the stock market this week is a result of Wall Street’s attempt to balance various factors, including corporate earnings, interest rates, potential for a recession, and the condition of the banking sector.

The current situation has created a particularly volatile market as investors monitor several factors at once.

On Thursday, investors will be keeping an eye on economic data such as weekly jobless claims and gross domestic product figures. Additionally, Boston Federal Reserve President Susan Collins, Richmond Fed President Thomas Barkin, and Minneapolis Fed President Neel Kashkari are scheduled to speak in the afternoon.

Stock market indexes on track for weekly gains, led by Dow and S&P 500

The three major indexes are poised for gains this week, with the Dow leading at 1.5% and the S&P 500 close behind with 1.4%. The Nasdaq Composite had a more subdued advance at 0.9%.

Despite the banking crisis and fears of a hard landing, market veteran Ed Yardeni believes the S&P 500 can still achieve a double-digit gain this year. He set his S&P 500 year-end target at 4,600, a 20% gain for the year and 14% rally from Wednesday’s close.

The Nasdaq Composite is also on track for a 13% gain by the end of the quarter, with a rally in tech stocks driving the broader market up.

Short-Term Outlook

The stock market is expected to continue its volatile activity in the short term, as investors try to balance various factors such as corporate earnings, interest rates, and the condition of the banking sector.

However, the three major indexes are on track for weekly gains, with the Dow leading at 1.5% and the S&P 500 close behind with 1.4%.

The Nasdaq Composite had a more subdued advance at 0.9%, but it is still on track for a 13% gain by the end of the quarter, driven by the rally in tech stocks.

Investors will also be monitoring economic data such as weekly jobless claims and gross domestic product figures, as well as speeches from several Federal Reserve Presidents.

Despite concerns about the banking crisis and a hard landing, market veteran Ed Yardeni remains optimistic and believes the S&P 500 can still achieve a double-digit gain this year, with a year-end target of 4,600.

For a look at all of today’s economic events, check out our economic calendar.

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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