Nasdaq 100 is trading higher, with tech stocks fuelling the gains. This follows the rebounding of Bitcoin and other cryptocurrencies. Over the past two weeks, Bitcoin has been subject to heightened volatility. Notably, it dropped from $59,694 on 10th May to $31,000 on Sunday. The crypto has since been on a rebound to its current $38,317.90. Tesla, which holds a significant number of Bitcoin, had its share price rise by 4.40% at $606.44. Other tech stocks such as Apple and Facebook have risen by 1.33% and 2.66% respectively.
Nasdaq 100 is also reacting to the rising demand for growth stocks compared to the value stocks. This is a result of the fading bets on the Fed hiking interest rates. The central bank’s officials have been downplaying the ongoing inflation fears despite the hawkish tone in the recent FOMC meeting minutes. According to Raphael Bostic, Atlanta’s Fed President indicated that the expected inflation will likely be short-lived.
Nasdaq Technical Outlook
Nasdaq 100 has extended Monday’ gains by trading at 13.675.6 points, up by 0.14%. Since the beginning of the week, it has risen by about 2.34%. On a four-hour chart, it is trading between the mid and upper Bollinger bands.
I expect the index to rise to 13,762.3, which is along the upper Bollinger band. The bulls may manage to push it to 13,800 before pulling back. A move below the support level at 13,600 will invalidate this thesis.