Nasdaq Testing Highs
Following a correction lower from December highs, US stocks markets have roared back over recent weeks. The Nasdaq is sitting just below all-time highs ahead of the US open today, with the market bolstered by fresh optimism following the announcement of Trump’s mammoth AI spending plan. Trump announced details of his new StarGate venture which will see joint operations between SoftBank, Oracle and Open AI aimed at growing US AI infrastructure, reportedly creating around 100k jobs in the process.
AI Spending Optimism
News of the program was immediately cheered by tech investors eyeing the next boom in stock prices among key AI names like Nvidia, Oracle, Alphabet and others. While finer details of the new half a trillion-dollar program are yet to be revealed, the news is firmly bullish for tech stocks near-term with the Nasdaq posied to break out to fresh highs in coming session, following the S&P which printed new all-time highs yesterday.
Netflix Earnings Boost
Along with the boost from Trump’s spending announcement, the tech index is also being lifted by a rally in Netflix stock price yesterday in response to a bumper Q4 earnings report. Netflix topped earnings and revenues estimates over the holiday quarter, but more importantly saw a strong rally in subscriber numbers, now sitting above 300 million for the first time. Looking ahead next week, focus will turn to the big seven tech names, all due to report earnings, with the potential for a further rally in the Nasdaq on any upside surprises.
Technical Views
Nasdaq
The correction lower in the index found strong support into a test of support at 20,668.27 with price now back up just under the 22,132.02 highs. Price is also retesting the underside of the broken bull trend line, adding to strong resistance in the area. With momentum studies turning higher, focus is on an eventual break high while price holds above 20,668.27.
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With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.