- Nasdaq 100 futures rise 1%, extending a bullish run driven by AI and tech earnings expectations.
- Market participants eye Fed rate signals and macro data for further direction.
- Mega-cap tech stocks like Nvidia and Microsoft remain key catalysts.
Tech Rally Intensifies
Futures on the Nasdaq 100 climbed 1% in early trading, building on recent gains as investor confidence in the technology sector remains robust. The move comes amid a backdrop of strong AI-linked earnings and expectations that the Federal Reserve will maintain a cautious stance on rate hikes.
According to traders, the advance was broad-based, with top constituents including Nvidia, Microsoft, and Apple all contributing to the upside. “AI-related capital expenditure continues to drive sentiment,” said one market participant familiar with the matter. The rally follows a string of bullish calls on tech stocks from major Wall Street firms, citing cloud demand and infrastructure spending.
Economic data due later this week, including jobless claims and manufacturing reports, could influence the next leg of the move. However, for now, the path of least resistance appears higher, with the VIX slipping below 15, signaling a risk-on environment.
“Tech is the market’s engine room, and it’s firing on all cylinders,” noted another trader. The index has already gained over 10% this quarter, outpacing the S&P 500.
*Correction: An earlier version of this article misstated the percentage gain. The correct figure is 1%.