Markets.com Logo
euEnglish
LoginSign Up

The Nasdaq 100 is bouncing off

Jul 24, 2024
5 min read
Table of Contents
  • 1. The Nasdaq 100 CFD is rising
  • 2. Factors that affect the Nasdaq 100 index
  • 3. US elections
  • 4. Tesla performance
  • 5. Alphabet earnings
  • 6. Interest rates and monetary policy

nasdaq-width-1200-format-jpeg.jpg

The Nasdaq 100 index has shown resilience, rebounding from recent lows amid volatile market conditions.

Investors closely monitor this index, comprising 100 of the largest non-financial companies listed on the Nasdaq Stock Market. Its movements are often influenced by tech sector performance, impacting broader market sentiment. The recent bounce indicates investor confidence in tech stocks' growth potential despite economic uncertainties. Analysts suggest monitoring key tech giants like Apple, Amazon, and Microsoft for insights into future Nasdaq 100 movements. Overall, the index's recovery reflects ongoing market dynamics and investor sentiment towards tech sector stability and growth prospects.

Regarding the Nasdaq 100, the index is currently rebounding from its 50-day Exponential Moving Average (EMA) after experiencing a notable decline last week. Despite the significant breach of bullish trend line support recently, the overall longer-term trend remains robust. Both the 50-day EMA and 200-day Simple Moving Average (SMA) continue to ascend steadily, indicating sustained strength in the index's performance.

After a recent decline to approximately 50% from July 12 to July 19, the percentage of Nasdaq 100 component stocks trading above their respective 20-day and 50-day moving averages has shown improvement. As of Monday, July 22, both indicators surpassed the 50% mark once more.

 

The Nasdaq 100 CFD is rising


nasdaq-trading-width-1200-format-jpeg.jpg

A Nasdaq 100 CFD (Contract for Difference) is a financial derivative that allows traders to speculate on the price movements of the Nasdaq 100 index without owning the underlying assets. CFDs enable traders to take both long and short positions, aiming to profit from the price changes in the index. They are traded on margin, which means traders only need to deposit a fraction of the total trade value to open positions, thereby magnifying both potential profits and losses. CFDs are popular for their flexibility and the ability to trade indices, commodities, currencies, and stocks without owning them physically.

Over the past two weeks, the Nasdaq 100 CFD, which tracks Nasdaq 100 E-mini futures, has experienced a decline of 6.2% from its record intraday high of 20,792 on July 11 to a low of 19,501 on July 19.

During this period, it has lagged behind the value-oriented Dow Jones Industrial Average (+1.5%) and small-cap Russell 2000 (+4.7%), primarily due to the steepening of the US Treasury yield curve (10-year minus 2-year). From a technical analysis perspective, the Nasdaq 100 CFD appears to have reached a potential inflection point for a bullish reversal. This anticipation comes ahead of the earnings releases of Tesla and Alphabet after the US session's close on July 23.

The performance of Tesla and Alphabet is expected to heavily influence the Nasdaq 100 because both companies rank 7th and 8th respectively in terms of market capitalization among Nasdaq 100 component stocks. Their earnings outcomes could significantly impact market sentiment and potentially drive a turnaround in Nasdaq 100 CFD prices.

 

Factors that affect the Nasdaq 100 index


Nasdaq-100-width-1200-format-jpeg.jpg



US elections

Reports indicate that Vice President Kamala Harris has secured Democratic nomination to run against Republican Donald Trump in the upcoming November elections. President Joe Biden endorsed Harris over the weekend after announcing he would not seek reelection. Harris faces a challenging task as Trump has widened his lead in the presidential race following his official nomination at the Republican National Convention last week.

With a relatively quiet economic calendar, focus now shifts to key earnings reports, including two highly anticipated releases. The tech sector experienced significant declines last week amid expectations related to a potential Donald Trump presidency and bets on Federal Reserve rate cuts, leading to a rotation into sectors that have underperformed throughout the year.

 

Tesla performance

Tesla is set to announce its Q2 earnings amidst a 25% rise in its share price for July. Analysts anticipate Q2 revenue to be $24.7 billion, a decline from the previous year, mirroring Tesla's year-over-year drop in deliveries to 444,000 units. Expectations also foresee a 40% decrease in earnings per share (EPS) to $0.46, reflecting pressure on margins. Tesla has faced challenges as it reduced vehicle prices multiple times, impacting its historically strong profit margins.

 

Alphabet earnings

Alphabet is scheduled to release its earnings report amid trading slightly below its all-time high. Analysts project earnings per share (EPS) of $1.85 on revenue of $84.29 billion. The company's stock has risen by 30% year-to-date, outpacing peers like Microsoft (MSFT) and Amazon (AMZN). Investors will closely monitor how Alphabet leverages generative AI advancements to drive growth. Additionally, attention will be on ad revenue trends and expectations for a robust performance in cloud services.

 

Interest rates and monetary policy

Changes in interest rates set by central banks, especially the Federal Reserve in the US, affect borrowing costs for companies and consumer spending. Lower rates can stimulate economic activity and benefit tech companies, potentially lifting the Nasdaq 100.
 



When considering shares, indices, forex (foreign exchange) and commodities for trading and price predictions, remember that trading CFDs involves a significant degree of risk and could result in capital loss. 

Past performance is not indicative of any future results. This information is provided for informative purposes only and should not be construed to be investment advice.


Risk Warning and Disclaimer: This article represents only the author’s views and is for reference only. It does not constitute investment advice or financial guidance, nor does it represent the stance of the Markets.com platform. Trading Contracts for Difference (CFDs) involves high leverage and significant risks. Before making any trading decisions, we recommend consulting a professional financial advisor to assess your financial situation and risk tolerance. Any trading decisions based on this article are at your own risk.

Frances Wang
Written by
Frances Wang
SHARE

Markets

  • Palladium - Cash

    chartpng

    --

    -0.51%
  • EUR/USD

    chartpng

    --

    -0.17%
  • Cotton

    chartpng

    --

    0.21%
  • AUD/USD

    chartpng

    --

    -0.09%
  • Santander

    chartpng

    --

    -2.48%
  • Apple.svg

    Apple

    chartpng

    --

    0.53%
  • easyJet

    chartpng

    --

    -0.03%
  • VIXX

    chartpng

    --

    1.20%
  • Silver

    chartpng

    --

    0.22%
Tags DirectoryView all
Table of Contents
  • 1. The Nasdaq 100 CFD is rising
  • 2. Factors that affect the Nasdaq 100 index
  • 3. US elections
  • 4. Tesla performance
  • 5. Alphabet earnings
  • 6. Interest rates and monetary policy

Related Articles

MP Materials Stock Surges 50%: What’s driving the MP Stock Growth?

MP Materials Stock Surges 50%: MP Materials Corp. has recently seen its stock price surge by an impressive 50%.

Ghko B|about 12 hours ago

Stock market today: Nasdaq rallied to new highs as Nvidia hits $4T valuation

Stock market today: the Nasdaq Composite Index surged to new highs today, fueled primarily by Nvidia’s unprecedented achievement of reaching a $4 trillion market valuation.

Ghko B|1 day ago

Datadog (DDOG) Joins S&P 500: What’s the Datadog stock price target in 2025?

Datadog (DDOG) Joins S&P 500: Datadog, a leading provider of monitoring and analytics for cloud-scale applications, recently achieved a significant milestone by joining the S&P 500.

Ghko B|1 day ago
Markets.com Logo
google playapp storeweb tradertradingView

Contact Us

support@markets.com+12845680155

Markets

  • Forex
  • Shares
  • Commodities
  • Indices
  • Crypto
  • ETFs
  • Bonds

Trading

  • Trading Tools
  • Platform
  • Web Platform
  • App
  • TradingView
  • MT4
  • MT5
  • CFD Trading
  • CFD Asset List
  • Trading Info
  • Trading Conditions
  • Trading Hours
  • Trading Calculators
  • Economic Calendar

Learn

  • News
  • Trading Basics
  • Glossary
  • Webinars
  • Traders' Clinic
  • Education Centre

About

  • Why markets.com
  • Global Offering
  • Our Group
  • Careers
  • FAQs
  • Legal Pack
  • Safety Online
  • Complaints
  • Contact Support
  • Help Centre
  • Sitemap
  • Cookie Disclosure
  • Regulation
  • Awards and Media

Promo

  • Gold Festival
  • Crypto Trading
  • marketsClub
  • Welcome Bonus
  • Loyal Bonus
  • Referral Bonus

Partnership

  • Affiliation
  • IB

Follow us on

  • Facebook
  • Instagram
  • Twitter
  • Youtube
  • Linkedin
  • Threads
  • Tiktok

Listed on

  • 2023 Best Trading Platform Middle East - International Business Magazine
  • 2023 Best Trading Conditions Broker - Forexing.com
  • 2023 Most Trusted Forex Broker - Forexing.com
  • 2023 Most Transparent Broker - AllForexBonus.com
  • 2024 Best Broker for Beginners, United Kingdom - Global Brands Magazine
  • 2024 Best MT4 & MT5 Trading Platform Europe - Brands Review Magazine
  • 2024 Top Research and Education Resources Asia - Global Business and Finance Magazine
  • 2024 Leading CFD Broker Africa - Brands Review Magazine
  • 2024 Best Broker For Beginners LATAM - Global Business and Finance Magazine
  • 2024 Best Mobile Trading App MENA - Brands Review Magazine
  • 2024 Best Outstanding Value Brokerage MENA - Global Business and Finance Magazine
  • 2024 Best Broker for Customer Service MENA - Global Business and Finance Magazine
LegalLegal PackCookie DisclosureSafety Online

Payment
Methods

mastercardvisanetellerskrillwire transferzotapay
The markets.com/za/ site is operated by Markets South Africa (Pty) Ltd which is a regulated by the FSCA under license no. 46860 and licensed to operate as an Over The Counter Derivatives Provider (ODP) in terms of the Financial Markets Act no.19 of 2012. Markets South Africa (Pty) Ltd is located at BOUNDARY PLACE 18 RIVONIA ROAD, ILLOVO SANDTON, JOHANNESBURG, GAUTENG, 2196, South Africa. 

High Risk Investment Warning: Trading Foreign Exchange (Forex) and Contracts For Difference (CFDs) is highly speculative, carries a high level of risk and is not appropriate for every investor. You may sustain a loss of some or all of your invested capital, therefore, you should not speculate with capital that you cannot afford to lose. You should be aware of all the risks associated with trading on margin. Please read the full  Risk Disclosure Statement which gives you a more detailed explanation of the risks involved.

For privacy and data protection related complaints please contact us at privacy@markets.com. Please read our PRIVACY POLICY STATEMENT for more information on handling of personal data.

Markets.com operates through the following subsidiaries:

Safecap Investments Limited, which is regulated by the Cyprus Securities and Exchange Commission (“CySEC”) under license no. 092/08. Safecap is incorporated in the Republic of Cyprus under company number ΗΕ186196.

Finalto International Limited is registered  in the Saint Vincent and The Grenadines (“SVG”) under the revised Laws of Saint Vincent and The Grenadines 2009, with registration number  27030 BC 2023.

Close
Close

set cookie

set cookie

We use cookies to do things like offer live chat support and show you content we think you’ll be interested in. If you’re happy with the use of cookies by markets.com, click accept.