Nasdaq surges as Big Tech earnings, Fed decision take center stage
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The Nasdaq Composite (IXIC +2.03%) rebounded strongly on Tuesday, regaining momentum after Monday’s AI-driven selloffNasdaq Surges as Big Tech Earnings, Fed Decision Take Center Stage
Nasdaq Bounces Back as Investors Shift Focus to Earnings
The Nasdaq Composite (IXIC +2.03%) rebounded strongly on Tuesday, regaining momentum after Monday’s AI-driven selloff. Market participants pivoted their attention to upcoming earnings reports from key Magnificent Seven (Mag 7) companies, with Microsoft (MSFT +2.91%), Tesla (TSLA +0.24%), and Meta (META +2.19%) set to release their Q4 2024 financials after the closing bell.
Investors anticipate robust growth metrics from these tech giants, as their earnings will provide critical insights into the resilience of the sector amidst geopolitical tensions and regulatory uncertainties. The rebound reflects renewed confidence in Big Tech’s earnings power, offsetting concerns over China’s AI advancements and potential market disruptions.
Federal Reserve to Hold Rates Steady
The Federal Reserve wraps up its two-day FOMC meeting today, with markets widely expecting interest rates to remain unchanged at 4.25%-4.50%. The key focus will be on Fed Chair Jerome Powell’s post-meeting commentary, particularly regarding inflation trends and monetary policy projections for 2025.
President Donald Trump’s public push for immediate rate cuts adds another layer of complexity to Powell’s messaging. While the Fed has signaled potential rate reductions later in the year, today’s guidance will be critical for setting market expectations.
Futures Signal Market Indecision Ahead of Key Events
Following Tuesday’s broad-based rally—where the S&P 500 gained 1.0% and the Dow Jones Industrial Average added 0.3%—futures tied to major indices were largely flat on Wednesday morning, reflecting investor caution ahead of earnings releases and the Fed announcement.
Key Levels to Watch
Nasdaq Composite (IXIC): The index closed near 15,300, with resistance at 15,500 and support near 14,900. A strong earnings season could propel the index back toward all-time highs, while weaker-than-expected results could spark renewed selling pressure.
Microsoft (MSFT): Currently trading around $405, with upside potential toward $420 if cloud and AI segments exceed forecasts.
Tesla (TSLA): Hovering near $195, the EV maker’s results will be closely watched for margins and demand outlook, with resistance at $210.
Meta (META): Approaching $375, the social media giant could test $400 if ad revenue growth remains robust.
With earnings season in full swing and macro risks still in play, markets remain poised for heightened volatility in the coming sessions. --
Nasdaq Bounces Back as Investors Shift Focus to Earnings
The Nasdaq Composite (IXIC +2.03%) rebounded strongly on Tuesday, regaining momentum after Monday’s AI-driven selloff. Market participants pivoted their attention to upcoming earnings reports from key Magnificent Seven (Mag 7) companies, with Microsoft (MSFT +2.91%), Tesla (TSLA +0.24%), and Meta (META +2.19%) set to release their Q4 2024 financials after the closing bell.
Investors anticipate robust growth metrics from these tech giants, as their earnings will provide critical insights into the resilience of the sector amidst geopolitical tensions and regulatory uncertainties. The rebound reflects renewed confidence in Big Tech’s earnings power, offsetting concerns over China’s AI advancements and potential market disruptions.
Federal Reserve to Hold Rates Steady
The Federal Reserve wraps up its two-day FOMC meeting today, with markets widely expecting interest rates to remain unchanged at 4.25%-4.50%. The key focus will be on Fed Chair Jerome Powell’s post-meeting commentary, particularly regarding inflation trends and monetary policy projections for 2025.
President Donald Trump’s public push for immediate rate cuts adds another layer of complexity to Powell’s messaging. While the Fed has signaled potential rate reductions later in the year, today’s guidance will be critical for setting market expectations.
Futures Signal Market Indecision Ahead of Key Events
Following Tuesday’s broad-based rally—where the S&P 500 gained 1.0% and the Dow Jones Industrial Average added 0.3%—futures tied to major indices were largely flat on Wednesday morning, reflecting investor caution ahead of earnings releases and the Fed announcement.
Key Levels to Watch
Nasdaq Composite (IXIC): The index closed near 15,300, with resistance at 15,500 and support near 14,900. A strong earnings season could propel the index back toward all-time highs, while weaker-than-expected results could spark renewed selling pressure.
Microsoft (MSFT): Currently trading around $405, with upside potential toward $420 if cloud and AI segments exceed forecasts.
Tesla (TSLA): Hovering near $195, the EV maker’s results will be closely watched for margins and demand outlook, with resistance at $210.
Meta (META): Approaching $375, the social media giant could test $400 if ad revenue growth remains robust.
With earnings season in full swing and macro risks still in play, markets remain poised for heightened volatility in the coming sessions. --