NASDAQ 100 Q1 2025 Price Forecast

Nasdaq 100 Outlook

This of course is a market that has to deal with higher interest rates, but instead of focusing on what should happen, maybe we need to focus on what is happening. And what is happening in this market is very clear, every time it dips anything significantly, there are buyers coming in to buy some of the big technology stocks. It has been bumpy along the way in 2024, and I don’t see 2025 being any different. The first quarter of 2025 could very well be more of a sideways grind with an overall upward tilt, if that makes any sense.

So, it would probably be more along the lines of July of 2024, when every time we pulled back, there were buyers building up anticipation to go higher. The Donald Trump administration entering the White House, of course, will have a positive effect on a lot of businesses as it is a very business friendly administration. But it might actually show itself more in the Russell 2000, because those are smaller businesses.

These big stocks have had a good run all year and quite frankly, have had really strong runs over the last four years. I think that continues to be the case, but it would not surprise me at all to see January be somewhat sideways. But by the time we get to March, I think we will start to break higher in more of an upward and sustainable trajectory.

I expect 2025 to look very much like 2024. But if you look at 2024, then you also recognize that we did have the occasional sideways grind to work off froth. I think that’s where we’re now. We’re trying to find that range. A move above the 22,000 level, of course, would signify more momentum entering the market and therefore, I think that would be your sign that the upward trajectory continues. If we were to break down below the 20,000 level, that might be a deeper correction that you need to stay away from, at least for a while.