The U.S. major stock indexes started the week with a sluggish movement as investors prepared for two pivotal events: the Federal Reserve's rate decision and high-profile tech earnings.
Tech Earnings At The Door
Investors are closely examining a wave of mega-cap earnings in the wake of Intel and Tesla's disappointing earnings reports from the previous week. This has prompted concerns regarding the valuation of momentum stocks, which have propelled the market rally since the conclusion of last year.
Microsoft, which attracted attention in 2023 for its collaboration with OpenAI, is expected to disclose a 15.8% surge in quarterly revenue on Tuesday. This increase will be indicative of the expanding market fascination with artificial intelligence.
Earnings from Amazon.com, Meta Inc., Apple Inc, AMD, Alphabet, and MasterCards are among other crucial earnings releases.
A Rate Cut Is Possible
The Federal Funds Rate with the rate statement is set to be released this week and market participants might find it a crucial event to gauge the future price of the US Stock market.
The Job Openings and Labour Turnover Survey (JOLTS) and the ADP National Employment Report will be reviewed to gain insights into the robustness of the U.S. labor market.
Speculative traders are gravitating towards June rate cuts, some even anticipating them as early as March.
Nasdaq 100 Index (NAS100) Technical Analysis
In the daily chart of the NASDAQ 100 price, the overall market momentum is bullishly supported by the rising 20-day Exponential Moving Average.
Moreover, the ongoing buying pressure is still valid above the 161.8% Fibonacci Extension level from the 15954.05 high to the 14047.80 area. The dynamic 100-day SMA is confluence support to bulls, while the 14-day RSI is above the 70.00 overbought line.
Based on this structure, the Nasdaq 100 index can extend the buying pressure and reach the 19000.00 psychological level. However, massive downside pressure might come after a valid break below the 16233.30 level with a consolidation.
