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KEY MARKET DEVELOPMENTS:
- U.S. stocks rebounded on Tuesday after a lacklustre performance earlier in the week
- The S&P 500 gained 2.76% and the Nasdaq 100 gained 3.13%. Both indices managed to break above their
- 50-day simple moving averages, a bullish sign for price action
Attention will turn to Tesla’s earnings report on Wednesday
Most Read: Equities Push Higher as Risk Sustains Serious Bid – S&P 500 & DAX 40
After the downturn earlier this week, because the company’s performance was better than expected, those who bought a dointed market poured into the invested stocks, and US stocks soared on Tuesday. Although economic challenges have intensified in recent months, American companies have spent a harsh environment and have achieved some success, and have announced steady returns. Although any major conclusion is too early to get during this period.
Other places, Gazprom, a Russian state -owned energy company, will resume the news that exports to Europe through Nord Stream 1 on Thursday also increases optimism.
In the final analysis, the S & P 500 Index rose 2.75% to 3,937 points, the highest level since June 28, allowing the stock benchmark to break through the bear city area and break through its 50 -day simple moving average. This is the bottom of the bullish signal. At the same time, by the promotion of Meta Platforms, NVIDIA, Alphabet, and Amazon’s strong rise, the Nasdaq 100 index rose 3.13% to 12,249 points.
While the recovery in risk assets is welcome, sentiment remains fragile amid tightening financial conditions, soaring inflation and slowing economic activity. Lower liquidity makes things worse and less predictable, amplifying price swings in both directions, as seen Monday when negative news about Apple’s hiring plans gave way to a brutal pullback on Wall Street.
Looking ahead, with no major events on the U.S. economic calendar as of Friday, earnings season will continue to be all the focus in the near term. Given the electric car maker’s heavy weighting in both the S&P 500 and Nasdaq 100, traders should keep an eye on Tesla’s numbers after Wednesday’s close.
Turning to expectations, Wall Street analysts expect the automaker to post earnings of $1.73 a share on sales of $18.26 billion. If Tesla’s earnings, and more importantly, its guidance can be surprisingly upside in a meaningful way.
NASDAQ 100 TECHNICAL ANALYSIS
The Nasdaq 100 surged on Tuesday and decisively revised its 50-day simple moving average higher, but failed to break key technical resistance near 12,250. As bullish momentum builds, a breakout could be just around the corner, a scenario that could have a bullish impact on tech stocks and set the stage for a rally to 12,600 and then 13,000.
On the other hand, if the price fails to push higher and sellers reappear to dilute the rally, as has happened many times in the current bear market, initial support comes at 11,500, then 11,325. On further weakness, the focus turns to the 2022 low just below 11,040.
NASDAQ 100 TECHNICAL CHART
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