US equities get dragged higher by upbeat tech sector, NASDAQ 100 hits record high

FXStreet
Updated
Mitrade
coverImg
Source: DepositPhotos

US equities broadly rally as markets shrug off mid-week rate tantrum.


Indexes climbed on tech-led earnings expectations.


S&P 500, NASDAQ both close near all-time highs.



US equity indexes saw broad gains on Thursday after US stock traders shook off the early week's misery over Federal Reserve (Fed) rate cuts unlikely to come as soon as money markets are hoping. Despite the early week's gains, equity indexes closed near all-time highs on Thursday after the tech sector led major indexes into the top end on earnings hope and general AI hype.


Large-cap tech stocks led the larger market higher on a rosy AI-fueled revenue outlook, with chipmakers seeing the largest gains, particularly tech companies that provide the necessary hardware for AI projects.


According to the CME’s FedWatch tool, markets are now pricing in just a 57% chance of a rate cut from the Fed by the Federal Open Market Committee’s (FOMC) March meeting, with money markets currently pricing in 100% odds of at least some form of Fed easing by May 1. This stands in sharp contrast to the Fed’s current stance, with multiple FOMC governors hitting newswires this week talking down odds of any moves on rates until inflation continues down to 2% appreciably, with notable Fed members including Atlanta Fed President Raphael Bostic noting on Thursday that he doesn’t see Fed reference rates coming down until August at the earliest, barring any significant changes in the US’ current economic outlook.


The S&P 500 (S&P) closed within touch distance of all-time highs of $4,812.38, ending Thursday at $4,780.94 to gain 41.73 points on the day, climbing 0.88%. The Dow Jones Industrial Average (DJIA) climbed over half a percent to gain 201.94 points on Thursday, closing at $37,468.61 while the NASDAQ Composite equity index soared 1.35% to climb over 200 points, ending the day at $15,055.65.



NASDAQ 100 Technical Outlook


The NASDAQ 100 mega-cap stock index soared to a record high on Thursday, climbing to an all-time high of $16,994.56 and wrapping up Thursday’s market action at $16,982.29, gaining 246.01 points or 1.47%.


Technical levels remain well below current price action, with the 50-day and 200-day Simple Moving Averages (SMA) at $16,254.00 and $15,038.00 respectively. The index has climbed nearly 21% from October’s decline into $14,057.00, and the NASDAQ 100 is on pace to close in the green for all but one of the last 12 consecutive trading weeks.


NASDAQ 100 Daily Chart, Source: TradingView.

 

* The content presented above, whether from a third party or not, is considered as general advice only.  This article should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments.

goTop
quote
Do you find this article useful?
Related Articles
placeholder
2 Things to Watch When Uber Reports Its Q3 2024 ResultsTradingKey - Two decades ago, ride-hailing wasn’t a term that anyone had heard of. However, the rise of massive ride-hailing platforms have changed that and allowed anyone to catch a card ride when th
Author  Mitrade
Oct 30, Wed
TradingKey - Two decades ago, ride-hailing wasn’t a term that anyone had heard of. However, the rise of massive ride-hailing platforms have changed that and allowed anyone to catch a card ride when th
placeholder
L'Oréal Q3 Misses Expectations as China Beauty Sales Worsen, Deutsche Bank Downgrades to SellInsights – Despite growth across all divisions of French cosmetics giant L'Oréal Group in Q3 2024, revenue slowed more than expected, with China’s beauty market continuing to face challenges. Wall S
Author  Mitrade
Oct 24, Thu
Insights – Despite growth across all divisions of French cosmetics giant L'Oréal Group in Q3 2024, revenue slowed more than expected, with China’s beauty market continuing to face challenges. Wall S
placeholder
Starbucks Reports Sharp Decline but Confidence in Business RecoveryTradingKey - On Tuesday, Starbucks released preliminary quarterly results showing a 7% decline in same-store sales, marking the third consecutive quarterly drop and the largest decline since the onset
Author  Mitrade
Oct 23, Wed
TradingKey - On Tuesday, Starbucks released preliminary quarterly results showing a 7% decline in same-store sales, marking the third consecutive quarterly drop and the largest decline since the onset
placeholder
Rivian's annual deliveries at risk amid implied demand softness - JPMorganInvesting.com -- Rivian's full-year deliveries may be at risk of being hit by a softening in demand, according to analysts at JPMorgan Chase (NYSE:JPM).
Author  Investing.com
Oct 23, Wed
Investing.com -- Rivian's full-year deliveries may be at risk of being hit by a softening in demand, according to analysts at JPMorgan Chase (NYSE:JPM).
placeholder
Why Chinese Stocks PDD Holdings, GDS Holdings, and Full Truck Alliance Were Bouncing Back TodayShares of Chinese tech and consumer stocks PDD Holdings (NASDAQ: PDD), GDS Holdings (NASDAQ: GDS), and Full Truck Alliance (NYSE: YMM) rallied 3.5%, 2.9%, and 6.8% on Tuesday, resp
Author  The Motley Fool
Oct 23, Wed
Shares of Chinese tech and consumer stocks PDD Holdings (NASDAQ: PDD), GDS Holdings (NASDAQ: GDS), and Full Truck Alliance (NYSE: YMM) rallied 3.5%, 2.9%, and 6.8% on Tuesday, resp