Nasdaq 100 futures (NQ)

Nasdaq 100 (NQ) Gains as Meta Jumps on Upbeat Report

  • Nasdaq gains amid upbeat reports of Meta Platforms.
  • Overall, the index is expected to close the month with about 12% losses.
  • Disappointing earnings reports of Netflix and Alphabet may weigh on the NQ.

After a two-day decline, futures on the Nasdaq 100 (NQ) gained up to 2.2%, around 13,340. However, the index pared off gains partially later. Stocks worldwide have also been boosted by China’s commitment to supporting its economy and boosting the growth of internet platform companies.

In the US, Meta Platforms shares are up 19%. In addition, social network Facebook added more users than forecasted in the first quarter, leading to premarket trading. In terms of the Nasdaq 100, the meta has a weight of 3%, and in terms of the S&P 500, a weight of 1.1%. Bloomberg calculations indicate that this move accounts for approximately one-third of today’s Nasdaq futures gains.

IG Asia Pte strategist Jun Rong Yip wrote in a note that Meta Platforms’ earnings release brought some relief. In terms of the S&P 500, the index continues to attempt to hold above 4140, but overall sentiment may remain cautious.

The Nasdaq 100 (NQ) is expected to lose 12% this month, marking its worst performance since October 2008 during the global financial crisis. A tightening shift in monetary policy from the Federal Reserve has put particular pressure on technology stocks this year. In addition, the disappointing results from Netflix Inc and Alphabet Inc have increased concerns about future earnings growth at high-quality tech companies.

According to Natasha Ebtehaj, global portfolio manager for Columbia Threadneedle on Bloomberg TV, Nasdaq and its subset of stocks reflect the overall earnings picture, which means that earnings were positive across the board, including technology stocks. Meanwhile, earnings were seen as quite negative by the general public.

Nasdaq 100 (NQ) technical analysis: Bulls gaining above 20-SMA

Nasdaq 100 (NQ) 4-hour chart
Nasdaq 100 (NQ) 4-hour chart

Nasdaq 100 (NQ) price has gained beyond the 20-period SMA (green line) on the 4-hour chart. The index looks positive to post further gains. The bullish pin bar candle indicates that the downside for the index is limited. However, the recent swing high of around 13,583.50 may provide interim resistance. If the index breaks the resistance, the next resistance will be a 50-period SMA (yellow line) around 13,630.

Alternatively, if the bears prevail below the pin bar candle, the immediate support will be around the swing low of 12,785.25.