The NASDAQ 100 index opened lower today as the futures slipped after the release of Alphabet’s earnings. The overall good results of the tech giant were overshadowed by the disappointing revenue from its cloud business. This also offset the upbeat Q3 earnings from Microsoft which boosted the investor confidence.
The benchmark indices are showing a recovery this week as the positive earnings have improved the market sentiment. The S&P 500 index and Dow Jones Index both are up this week. This bounce in the US equities comes just days before the US Fed decides on the interest rates.
On Wednesday, the Nasdaq futures were down 64 points during their London session. This suggests that the index will most likely open lower today. In addition to the Alphabet results, the rising bond yields and today’s rebound in the DXY index are also acting as the headwinds for stocks.
Tech giants like Alphabet, Apple, Meta and Microsoft are some of the biggest constituents of the NASDAQ 100 index. Therefore, when these heavyweights sneeze the whole market feels it.
Analysts are expecting the Fed to keep rates constant in next week’s FOMC meeting. However, the markets are still pricing the rates to stay elevated till the middle of 2024.
NASDAQ 100 Index Forecast
This week’s bounce in the NASDAQ comes from the 14,560 support level which I have mentioned a lot of times. We can also identify a range in which the index has been hovering for the past few months. A reclaim of the lows of this trading range around 14,687 may result in a strong recovery rally.
The NASDAQ 100 index forecast will flip extremely bullish if it loses its 14,500 support level. At the moment, the bulls are defending the key level but things may change quickly if the economic data starts to point towards a recession.
