Nasdaq-100 (US100) as well as other Wall Street indices have been struggling recently. Still-tense geopolitical situation in the Middle East, as well as declining market odds for the beginning of Fed rate cut cycle in the first half of this year, are putting pressure on US equity markets. Big tech companies, which were drivers of Wall Street gains in 2023 and Q1 2024 also saw their rallies ease or halt.
However, things may be about to change. We are entering a period of Wall Street earnings season, that will see release of Q1 report from US big tech companies. This is a chance for Nasdaq-100 especially. Among key Nasdaq-100 members that will report earnings this week, one can find:
Start investing today or test a free demo
Open real account TRY DEMO Download mobile app Download mobile app- Tesla (TSLA.US) - Tuesday, after market close
- Meta Platforms (META.US) - Wednesday, after market close
- Alphabet (GOOGL.US) - Thursday, after market close
- Intel (INTC.US) - Thursday, after market close
- Microsoft (MSFT.US) - Thursday, after market close
Taking a look at US100 chart at H4 interval, we can see that the index is trading around 7% below all-time highs reached at the end of March 2024. Index have been pulling back since the beginning of Q2 2024, but the downward move has been halted recently at the 61.8% retracement of the upward move launched at the beginning of January 2024. However, attempts to launch a recovery move were halted in the 17,450 pts area. Strong reports from US big tech companies may help fuel a longer-lasting recovery. On the other hand, failure to appease investors and show Q1 results that matched Q1 stock performance may trigger another leg lower in the ongoing pullback. In case the index breaks below 17,250 pts support, the next potential support can be found in the 17,000 pts area.
Source: xStation5
The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.
