Nasdaq 100, Dow Jones, S&P 500 News: Tesla’s Surge Propels Tech Gains Ahead of Meta Earnings

Nasdaq Leads Wall Street with Strong Gains from Tesla and Others

The Nasdaq outperformed other major indexes on Wall Street on Wednesday, driven by significant gains in Tesla and other growth stocks following optimistic earnings reports. Tesla’s shares soared by 9.7% after the company projected increased sales and announced plans to introduce more affordable models by early 2025. This news provided a substantial boost to market sentiment, which had been tepid in recent weeks.

At 14:35 GMT, the Dow is trading 38389.49, down 114.20 or -0.30%. The S&P 500 Index is at 5064.93, down 5.62 or -0.11% and the Nasdaq 100 is trading 15723.56, up 26.92 or +0.17%.

Earnings Season Boosts Market Optimism

The broader market was buoyed by a flurry of positive earnings results. Microsoft and Nvidia posted gains of 0.8% and 1.6%, respectively, contributing to the tech sector’s advance. Biogen rose by 3.7% after surpassing first-quarter profit expectations, while Boston Scientific increased by 6.1% following an upward revision of its profit forecast for the year. Toy manufacturer Hasbro also reported a smaller-than-expected drop in sales, with shares jumping by 13.9%.

Challenges and Opportunities Ahead

Despite these positive developments, challenges remain as the market recuperates from last week’s sell-offs, which were triggered by geopolitical tensions and shifts in Federal Reserve rate-cut expectations. Data showing moderate increases in U.S.-manufactured capital goods orders indicated that business spending on equipment might have been sluggish in the first quarter. This week, investors are particularly focused on upcoming earnings reports from major firms like Meta, Microsoft, and Alphabet, as well as the upcoming Personal Consumption Expenditures index, which is a key inflation indicator watched by the Fed.

Sector Performance and Market Trends

While most S&P 500 sectors experienced declines, consumer discretionary stocks were notable gainers. Visa’s shares rose by 2.4% after the company’s earnings exceeded Wall Street expectations. Texas Instruments also performed well, with a 6.2% increase after forecasting higher-than-expected revenue for the second quarter. However, Enphase Energy saw a decline of 3.3% after its revenue projection fell short of expectations.

Market Forecast: Bullish Momentum Expected

The market outlook remains bullish, buoyed by strong earnings and positive corporate guidance. With key earnings reports from tech giants like Meta, Microsoft, and Alphabet on the horizon, investor sentiment is likely to stay elevated. The upcoming Personal Consumption Expenditures index could further bolster this optimism, indicating effective control of inflation by the Federal Reserve. While vigilance is advised due to potential geopolitical risks, the prevailing conditions and sector performances suggest sustained upward movement. Traders should focus on sectors that have demonstrated resilience and growth, as these are expected to lead the gains.

Technical Analysis

E-mini Nasdaq-100 Index futures are edging higher for a third straight session on Wednesday. Nonetheless, both the short-term and intermediate-term trends remain down. The longer-term trend is up.

The market is currently trading inside the support or 200-day moving average at 16783.97 and the resistance or 50-day moving average at 18182.27.

It’s too early to tell if the market is bottoming. At this time, it looks as if the market is going to complete a normal 50% to 61.8% retracement of the break from 18709.00 to 17113.25. This makes 17911.00 the minimum upside target of this current rally.