The Nasdaq 100 has an important week ahead as technical support holds the price steady for corporate earnings and economic data.
NAS 100 – Daily Chart
NAS 100 rests at 25,522 after the resistance at 25,829. 25,000 will be key support ahead of a potential push higher.
Investors are cautious ahead of big tech earnings following recent issues with AI spending at Oracle and Meta. US technology stocks have been volatile since a high in October as investors seek a new catalyst.
The US President has been a headwind for stocks in recent weeks, following events in Venezuela and Iran, and now a return to tensions over Greenland. The week ahead has important events, with Trump’s inauguration speech on Wednesday evening and big economic data on Thursday. A Q3 GDP revision will be released alongside the November Core PCE Price Index. Investors will be watching the latter for signs of stubborn inflation.
The Core PCE index is the Federal Reserve’s preferred inflation measure and will be crucial to the central bank’s monetary policy plans. A strong GDP combined with higher inflation could keep rates higher, but weak growth and slowing inflation could support dovish positioning.
Earnings season continues for US stocks with Netflix and Intel releasing this week, alongside blue-chip firms Johnson & Johnson and Procter & Gamble.
Stocks could be at risk on Monday after Trump imposed 10% tariffs on European nations that oppose his plans to take control of Greenland. The levy would increase to 25% in June, applying to Denmark, Norway, Sweden, France, Germany, the Netherlands, the UK and Finland.
The tariffs will worsen the recession risk in European countries and also continue to sour relations with the US Tech stocks have been resilient, but global risks remain, and disappointing earnings from some of the big AI players could lead to a larger correction.
