The holiday-driven week may provide the market with some tranquility after significant fluctuations. Moreover, some crucial earnings reports from large-cap companies could grab mass investors' attention to Nasdaq 100.
Can Rate Cut Influence Nasdaq 100 Bulls?
Consensus holds that the Federal Reserve has completed its interest rate hikes, supported by labor data that indicates lower inflation. This generated a possibility of a proactive approach to reduce the rate by the Fed. Moreover, the starting point of the rate cut cycle would be the middle of 2024. Moreover, concerns regarding the significant deceleration in the economy might push the Fed to lower the rate to a greater extent than what is currently anticipated by the markets.
Investors sentiment has shifted to forthcoming data on housing, orders for durable products, and jobless claims. The unemployment claims figures are anticipated to impact the market substantially. However, initial claims remain relatively low, which indicates an unwillingness to terminate employees. A significant escalation in unemployment claims may prompt the market to anticipate rate cuts in the coming year with greater vigor.
Nasdaq 100 Earnings Reports
This week will be eventful as the earnings session is on, and several large-cap companies are expected to release quarterly earnings reports.
Nvidia would be the main focus point for Nasdaq 100 stocks, where the current revenue expectation for the quarter ended October is $3.36 per share.
Among other stocks, Zoom Video Communications, Inc. (ZM), Lowe's Companies, Inc. (LOW), and Johnson Controls International plc (JCI) would grab investors attention.
Nasdaq 100 (NAS100) Technical Analysis
A bullish trend continuation is present in the daily chart of the Nasdaq 100. An immediate bearish pressure below the 14435.41 support level and an immediate rebound indicate a buyers’ presence in the market.
Moreover, the current price is yet to reach the 161.8% Fibonacci Extension level from the 15334.74 to 14057.71 zone. The dynamic 20 EMA is a confluence support, backed by a valid bullish trend line breakout and a retest.
Therefore, as long as the current price trades above the 15250.00 level, a bullish continuation is potent, targeting the 16500.00 level.
The alternative approach is to look for short opportunities after having a stable bearish daily candle and a consolidation below the 15000.00 level.
