Nasdaq 100 Index Surges to Record Highs On Stellar US Jobs Data
The Nasdaq 100 composite index has opened on a solid note after better-than-expected US jobs data. Data from the Bureau of Labor Statistics show that 4,800,000 jobs were added to the US economy in June 2020, far above the market prediction of 3,037,000 job additions and also higher than the 2,509,000 new jobs added in May 2020 (revised upwards to 2,699,000).
The Nasdaq 100 is 1.38% higher as at the time of writing, making a very bullish start to the day and sending the index well on its way to a potential fourth day of price gains.
US President Donald Trump has praised the jobs report, calling it “spectacular news for American workers and American families”, as the US markets prepare for the 240th Independence Day celebration. Trump calls the 7.5million jobs added over the last two months a sign that the US economy is “roaring back”. He also doubled down on the figures for job additions of minority demographics; African-Americans, Hispanics and female jobs saying these additions were record additions.
The markets seem to agree with him as the Nasdaq 100 get close to the 10,400 mark.
Technical Outlook for Nasdaq 100
The Nasdaq 100 is now trading at record highs, having surpassed the previous levels of 10320.4. It is now targeting the return line of the ascending channel which could interact with the expected immediate target at 10518.1 (241.4% Fibonacci extension from the downward wave from 10 March to 23 March 2020). For this upside move to be sustained, we would need a 3% penetration close from today’s candle above the previous all-time high.