CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
☰
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
✖

Nasdaq 100 Forecast :QQQ hovers around record highs in a quiet start

Article By: ,  Senior Market Analyst
February 23, 2024 1:52 PM

US futures

Dow futures 0.16% at 39123

S&P futures 0.17% at 5093

Nasdaq futures 0.13% at 18018

In Europe

FTSE -0.03% at 7689

Dax 0.10% at 17393

  • Indices pause for breath at record highs
  • Nvidia looks to add to gains
  • Oil is set to fall across the week 

Stocks steady after yesterday’s rally

U.S. stocks are set to open in a muted fashion on Friday, pausing for breath after yesterday's spectacular rally inspired by Nvidia to record highs.

The three major indices are on track to post gains across the week, with the S&P and the NASDAQ up 1.6% at 1.7%, respectively. The Dow is up 1.1% so far this week.

The economic calendar is empty on Friday, but investors could focus on comments from Federal Reserve governor Christopher Waller, who said he was in no rush to lower interest rates. His comments echo those of other Fed members who have suggested that persistent inflation and the strength of the labour market means there's no need to start cutting interest rates soon.

These comments align with yesterday's data after jobless claims came in stronger than expected, highlighting the resilience of the jobs market while PMI data also showed growth.

According to the CME Fed watch tool the market is pricing in a 70% probability of a rate cut in June. This has been pushed back from earlier expectations of a rate cut in May or March.

Corporate news

Nvidia is set to rise again after jumping 16% in the previous session after the AI chip designer posted impressive quarterly results and outlook. NVIDIA added $277 billion in market cap on Thursday, setting a record for the most significant one-day jump in history.

Warner Brothers Discovery is set for a 5% drop on the open after the media giant reported Q4 revenue below forecasts but insisted it was now on its way to growth.

Block is set to rise 16% after the payment firm beat quarterly revenue estimates and lifted its annual operating profit outlook.

Nasdaq 100  forecast – technical analysis

The Nasdaq 100 rose above its trendline and is hovering around its previous record higher, above 18,000, but has struggled to move past this key level. There could be a period of consolidation after the recent steep run higher. Buyers will look to lift the price into unchartered territory and fresh all-time highs. Support can be seen at 17650 yesterday’s low and 17000 round number.

FX markets – USD is falling, GBP/USD rises

The USD Is falling amid a lack of fresh economic data. The USD is on track for its first weekly fall in 2024 after almost two months of gains on expectations that the Federal Reserve will only start to cut interest rates later in the year.

EUR/USD is rising, capitalizing on the weaker U.S. dollar despite data showing that the German economy contracted -0.3% in the final quarter of last year and after Ifo German business climate ticked higher to 85.5 in line with forecasts.

GBP/USD is rising to 127 despite UK consumer confidence unexpectedly ticking lower in February to -21 amid concerns over persistent inflation. Yesterday, data suggested that the UK was already out of recession, with the PMI rising to a nine-month high.

Oil falls on worries over high rates for longer.

Oil prices are falling over 1.5% and are set to fall 2.5% across the week after two straight weeks of gains.

Data showed that US crude oil stockpiles rose 3.6 million barrels in the week ending February 16th, although gasoline stocks edged lower by 0.3 million barrels.

Oil prices have come under pressure this week amid expectations that the Federal Reserve will keep interest rates high for longer which could hurt the oil demand outlook.

.

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. CFD and Forex Trading are leveraged products and your capital is at risk. They may not be suitable for everyone. Please ensure you fully understand the risks involved by reading our full risk warning.

City Index is a trading name of StoneX Financial Ltd. Head and Registered Office: 1st Floor, Moor House, 120 London Wall, London, EC2Y 5ET. StoneX Financial Ltd is a company registered in England and Wales, number: 05616586. Authorised and regulated by the Financial Conduct Authority. FCA Register Number: 446717.

City Index is a trademark of StoneX Financial Ltd.

The information on this website is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement.

© City Index 2024