• Economy
  • Editor’s Pick
Money Rise Today – Investing and Stock News
  • Investing
  • Stock
Investing

Nasdaq is testing a key support level, which stocks hold the key?

by July 30, 2024
written by July 30, 2024

The Nasdaq 100 Futures have landed on a key support level ahead of Big Tech earnings. Traders and investors will be keeping a close eye on the developments this week as some of the biggest tech companies in the country announce their quarterly reports.

Here is how things currently stand on the daily chart.

Source: Trading View

As can be seen on the chart, the price is currently testing a key support area for the third time.

The trendline was already tested twice in April and May and bounced off it successfully.

Lightning strikes twice

What makes the Nasdaq dip of April interesting is that it came in a week when many of the biggest constituents of the Nasdaq index announced their earnings. One could conclude that the market keeps testing the waters for signs of the AI rally fizzling out. But it keeps going.

Two conclusions can be drawn from this occurrence. First, if the tech companies report strong earnings, it will spur a new rally.

Those strong earnings can only come on the back of growth in AI infrastructure, so it boils down to a bet on AI.

Secondly, and this scenario is more scary, if the earnings disappoint, it could trigger a selling that could sweep away all the gains of the last two years.

There is no denying the fact that the rally since 2022 has come on the back of the ‘Magnificent 7’ stocks. And these stocks have only been able to grow thanks to the race to AI technologies development.

So what happens if the AI growth stops? Will the remaining sectors take control of the index?

They’ve stayed relatively flat in the last two years in comparison to tech. And they’re unlikely to rally in the wake of disastrous tech earnings. This could be disastrous for the American stock market.

Who holds the key?

AI chip manufacturer Taiwan Semiconductor has already confirmed that AI spending is increasing.

Despite this, chip stocks have taken a severe beating in the last one month. AMD’s earnings after market today therefore hold the key, albeit a small one, in helping the index gain some support.

Then there is Microsoft which also announces its earnings later today. The fact that the tech giant is expected to announce quarterly revenue growth of 15% is scary to say the least.

A miss on those targets will likely tank the market as Microsoft is the second biggest constituent of the Nasdaq index.

Speaking of heavyweights, the biggest giant in the index, Apple Inc., also announces its earnings report on Thursday evening, together with Amazon, the fourth largest constituent by weight.

Needless to say, the next two days are not for the faint-hearted. Bulls and bears will battle it out the next two days, and the repercussions of that fight will determine the market path for the next 3 months at least.

The post Nasdaq is testing a key support level, which stocks hold the key? appeared first on Invezz

0 comment
0
FacebookTwitterPinterestEmail

previous post
Wells Fargo faces lawsuit over alleged health plan mismanagement and inflated prescription costs
next post
Amazon can now be held responsible for defective products sold by third-party sellers

related articles

Asian markets close: Nikkei, Kospi down; Sensex closes...

May 19, 2025

Qualcomm unveils AI chips for data centres with...

May 19, 2025

Best crypto to buy now: Bitcoin Pepe leads...

May 19, 2025

JPMorgan cuts Netflix rating, citing balanced risk-reward post-rally;...

May 19, 2025

Bitcoin ETF open interest dips 5% to $29.47B...

May 19, 2025

US stocks slip in the red on Monday:...

May 19, 2025

Should Klarna IPO remain on watch list after...

May 19, 2025

Why this brokerage downgraded UnitedHealth’s rating to ‘hold’

May 19, 2025

Nvidia opens NVLink Fusion ecosystem, expands Taiwan footprint...

May 19, 2025

Cathie Wood says Trump’s tariffs could unlock tech...

May 19, 2025
Enter Your Information Below To Receive Free Trading Ideas, Latest News, And Articles.


Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest News

  • ApeCoin and Akita Inu: New Targets and Prices for This Week

    September 24, 2024
  • ‘Got our a–es kicked’: Dems privately fret about losing House after GOP victory in White House, Senate

    November 6, 2024
  • With 7 days until voting starts, ‘election season’ kicks off sooner than you think

    August 30, 2024
  • Senate Republican campaign committee ‘grills’ Chuck Schumer on National Hamburger Day

    May 28, 2025
  • Amazon makes first foray into live news with election night special hosted by Brian Williams

    October 18, 2024

Popular Posts

  • 1

    Secret Service admits leaning on ‘state and local partners’ after claim it ignored Trump team’s past requests

    July 21, 2024
  • 2

    Elon and Vivek should tackle US funding for this boondoogle organization and score a multimillion dollar win

    December 4, 2024
  • 3

    Forex Profit Calculator: Maximize Your Trading Potential

    July 10, 2024
  • 4

    Five more House Democrats call on Biden to drop out, third US senator

    July 19, 2024
  • 5

    Biden calls to ‘lower the temperature’ then bashes Trump in NAACP speech

    July 17, 2024

Categories

  • Economy (829)
  • Editor's Pick (4,723)
  • Investing (624)
  • Stock (773)

Latest Posts

  • Spotify Q2 earnings preview: SPOT has gained over 55% YTD, is a profit turnaround coming?

    July 18, 2024
  • SafeMoon and LItecoin: SafeMoon tests new weekly support

    July 31, 2024
  • Putin says Russia is open to economic cooperation with US on rare earth minerals

    February 25, 2025

Recent Posts

  • Top Pentagon official John Ullyot to resign at end of week: report

    April 17, 2025
  • S&P 500, Nasdaq slip as NVIDIA underperforms; Tesla shares and crypto stocks jump

    March 3, 2025
  • Sports streaming venture from Fox, Disney and Warner Bros. priced at $42.99 a month

    August 1, 2024

Editor’s Pick

  • Flashback: Murkowski voted to confirm 19 Biden Cabinet picks in defiance of GOP

    January 24, 2025
  • Trump taunts Trudeau with new title as he continues tariffs push: ‘Great State of Canada’

    December 10, 2024
  • Trump picks Miami-Dade County Commissioner Kevin Marino Cabrera for Panama ambassador

    December 26, 2024
  • About us
  • Contacts
  • Privacy Policy
  • Terms & Conditions

Disclaimer: moneyrisetoday.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2025 moneyrisetoday.com | All Rights Reserved

Money Rise Today – Investing and Stock News
  • Economy
  • Editor’s Pick
Money Rise Today – Investing and Stock News
  • Investing
  • Stock