Risk appetite was holding up well in the first half of Thursday’s session for global markets, even if US futures have eased back slightly. Strong numbers from Nvidia (NASDAQ:) added a late boost to Wall Street yesterday, and that positive tone filtered through to Europe this morning. The pushed to a fresh weekly high, while the climbed to another record, underlining just how resilient equities remain. That said, the initial pop in Nvidia has lost a touch of momentum.
Is Nvidia Results Enough to Keep Markets Supported?
US futures have drifted off their best levels as the earnings beat, while solid, failed to spark a broader surge across the technology space. Markets had built up significant expectations into the release, and although the figures delivered, some on Wall Street were left wanting more clarity around the forward outlook and the precise drivers of future growth.
In truth, the results should soothe some of the recent anxiety around AI spending. However, lingering questions remain over intensifying competition and whether the current pace of infrastructure investment is truly sustainable. That debate is unlikely to disappear anytime soon.
Meanwhile, Salesforce (NYSE:) struck a more cautious tone. Its guidance for the new fiscal year was broadly underwhelming, reinforcing concerns that established software names may struggle to defend market share in an increasingly AI-driven landscape. The shares slipped more than 3% in pre-market trade, contrasting with Nvidia’s modest 0.8% gain.
Markets Are in Risk-On Mode
were little changed after a respectable two-day rebound. The broader and its US peers have made good gains following Monday’s sell-off, which was sparked by a note from Citrini Research outlining AI-disruption scenarios. Still, traders appear reluctant to chase the rally too aggressively from here. With fresh reminders from Salesforce that not all incumbents are guaranteed winners in the AI race, caution remains the order of the day. That said, sentiment was positive across the Atlantic. European equities rose higher, extending their record-breaking run in the case of the FTSE 100 as Rolls-Royce surged to an all-time high. In other markets, crude eased while Bitcoin steadied above $68,000 following yesterday’s powerfully rally. Consolidation after a sharp rally is always a positive sign.
Nasdaq 100 Technical Levels to Watch
Let’s now look at the chart of the Nasdaq 100 futures and highlight some levels to watch. After several days of tight consolidation, we finally had a clean break to the upside yesterday, with a strong close near the highs. That’s a bullish signal, and for now the path of least resistance looks higher.
In terms of levels, the key support zone is now around 25,500 to 25,140. If this breakout is genuine, ideally the index shouldn’t fall back below that area. A sustained move under 25,000, however, would start to undermine the bullish case. So that’s the line the bulls need to defend on any pullback.
On the upside, the first resistance comes in around 25,400. This was previously support, then resistance after we broke lower, and now we’re testing it again. A clear break above that would open the door towards the next resistance zone around 26,000, above which there’s nothing significant until the all-time high at 26,400.
My base case, given the strength in earnings — particularly from Nvidia — and the broader positive tone, is for a push higher, perhaps a modest pullback, and then another leg up. That said, markets rarely move in straight lines. Stay flexible and let price action guide you.
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Disclaimer: This article is written for informational purposes only; it does not constitute a solicitation, offer, advice, counsel or recommendation to invest as such it is not intended to incentivize the purchase of assets in any way. I would like to remind you that any type of asset, is evaluated from multiple perspectives and is highly risky and therefore, any investment decision and the associated risk remains with the investor.
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