May 09, 2024

The Nasdaq 100 has its all-time highs in sight as earnings season slows down for tech stocks. 

NAS-100-–-Daily-ChartNAS 100 – Daily Chart 

The Nasdaq 100 is finding support at the 18,000 level and could soon move to the all-time highs. A late-March selloff reversed below the 17,000 level and looked like a near-term correction. 

Stocks dipped on Wednesday, but there is still a sign of buyers in play. The Nasdaq 100 has been boosted by strong earnings from Google, Microsoft, and Apple, which gives investors confidence to continue buying. 

Goldman Sachs also noted that its share buyback desk is busy again, with $5.5 billion in repurchases every day this month. 

“We are now comfortably within the open window which is estimated to run through 6/14/24,” the bank said. 

Lyft shares rose after the ride-hailing firm delivered higher results and guidance than estimates. Reddit stock also rose 13% after the social media company reported first-quarter results ahead of expectations. 

The market will keep a keen eye on the situation in the Middle East, but without any shocking news, the Nasdaq could return to its all-time highs in May. 

Artificial intelligence will remain a key focus, and the economic impact could be even more significant than expected. Analysts at McKinsey & Co. see a vast $4.4 trillion potentially added each year. Tech giants are increasing their efforts in space. The Economist says that the world’s largest cloud computing companies have invested $40 billion, mainly in data centres with AI capability. 

That will need to show up soon for tech stocks to hold onto their current valuations. Microsoft is valued at 35x annual earnings with a market cap of $3 trillion.

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