NAS100 Upbeat Ahead of Nvidia & Jackson Hole

  • NAS100
    (${instrument.percentChange}%)
  • NVDA.us
    (${instrument.percentChange}%)

Nvidia & Fed

NAS100 is having an amazing year, with gains of more than 40% during the January-July period, driven largely by the generative Artificial Intelligence (AI) boom and the slowdown in the pace of tightening by the Fed. Both of these themes are in the spotlight this week and will likely determine the trajectory of the tech-heavy index.

Artificial Intelligence (AI) has emerged as the main battlefield in Silicon Valley, after OpenAI launched ChatGPT, a conversational AI chatbot. Nvidia has enabled the AI revolution, since its GPUs are the standard in development and deployment of such applications and already reaps the benefits. Its stock has more than tripled in the first seven months of the year, easily outperforming the rest of the Magnificent Seven (Meta, Apple, Microsoft, Alphabet, Amazon, Tesla).

In its last report in late-May, Nvidia had offered strong Revenue guidance for Q2 FY2024, which will be reported on Wednesday. The firm expects sales to rise 11% q/q to $11 billion, due to increased demand for its AI infrastructure. The bar is high and the results can set the tone for the tech sector.

Markets will also be looking forward to the Fed's Jackson Hole Symposium, which kicks-off later this week, with Chair Powell's speech expected on Friday. His comments will be closely watched, as investors try to assess the next steps, at a time when global monetary policy is highly uncertain. Officials have already delivered 525 basis points of hikes and Inflation is coming down, but the economy is strong and the labor market hot, despite sign of easing. Mr Powell has not committed around the next moves, keeping more tightening as well as a hold in play.

Trade the News: View our Economic Calendar

NAS100 comes from its third straight losing week, as strong economic data and hawkish Fed minutes support the higher-for-longer mantra and markets have pushed back expectations around the timing of rate cuts. This has made the index vulnerable to the critical 14,336-14,220 region, but strong catalyst would be needed for further losses below it.

Despite the recent weakness, NAS100 returns to profits this week, limiting the correction to the 38.2% Fibonacci. It tries to retake the EMA200 (black line), which would shift immediate bias to the upside and bring the 2023 highs to its crosshairs (15,946).

Nikos Tzabouras

Senior Financial Editorial Writer

Nikos Tzabouras is a graduate of the Department of International & European Economic Studies at the Athens University of Economics and Business. He has a long time presence at FXCM, as he joined the company in 2011. He has served from multiple positions, but specializes in financial market analysis and commentary.

With his educational background in international relations, he emphasizes not only on Technical Analysis but also in Fundamental Analysis and Geopolitics – which have been having increasing impact on financial markets. He has longtime experience in market analysis and as a host of educational trading courses via online and in-person sessions and conferences.

${getInstrumentData.name} / ${getInstrumentData.ticker} /

Exchange: ${getInstrumentData.exchange}

${getInstrumentData.bid} ${getInstrumentData.divCcy} ${getInstrumentData.priceChange} (${getInstrumentData.percentChange}%) ${getInstrumentData.priceChange} (${getInstrumentData.percentChange}%)

${getInstrumentData.oneYearLow} 52/wk Range ${getInstrumentData.oneYearHigh}
Disclosure

Any opinions, news, research, analyses, prices, other information, or links to third-party sites contained on this website are provided on an "as-is" basis, as general market commentary and do not constitute investment advice. The market commentary has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and it is therefore not subject to any prohibition on dealing ahead of dissemination. Although this commentary is not produced by an independent source, FXCM takes all sufficient steps to eliminate or prevent any conflicts of interests arising out of the production and dissemination of this communication. The employees of FXCM commit to acting in the clients' best interests and represent their views without misleading, deceiving, or otherwise impairing the clients' ability to make informed investment decisions. For more information about the FXCM's internal organizational and administrative arrangements for the prevention of conflicts, please refer to the Firms' Managing Conflicts Policy. Please ensure that you read and understand our Full Disclaimer and Liability provision concerning the foregoing Information, which can be accessed here.

Past Performance: Past Performance is not an indicator of future results.

Spreads Widget: When static spreads are displayed, the figures reflect a time-stamped snapshot as of when the market closes. Spreads are variable and are subject to delay. Single Share prices are subject to a 15 minute delay. The spread figures are for informational purposes only. FXCM is not liable for errors, omissions or delays, or for actions relying on this information.