- Nasdaq 100 futures are down from overnight highs and remain positive
- ARKK is struggling, down more than 6% on the day and dipping back below $50.
- Apple is up 3%, and gains are likely to spiral out of control after Thursday’s close.
On Thursday, the Nasdaq 100 futures remained positive despite a sharp decline from premarket highs. Meta (formerly Facebook) contributed to the overnight gain with an overshoot on Wednesday’s gains.
Following last quarter’s debacle and low expectations for Meta, NQ jumped to 13340 during the overnight session. In the European session and following the opening of New York trading, profits declined. Despite Thursday’s bullishness for the index, the downtrend remains largely unchanged as we head into next week’s FOMC meeting.
The market appears to be in a sell-on rally environment as traders rush to prices amid tight financial conditions. The Nasdaq has fallen more than 20% year-to-date due to the drop in tech stocks. As long as Bond collapses, big names in tech will continue to fight.
Technology has recently come under heavy attack, as mentioned earlier. The price of ARKK, an innovative ETF managed by Kathy Wood, has plummeted from its post-pandemic high. ARKK is down about 70% from its peak in 2021, over 6% on the day. Teledoc Health’s stock plunged nearly 50% following Wednesday’s earnings report, adding to Tuesday’s pain. While tech stocks continue to show significant weakness, ARKK is closing in on the $33 low of March 2020.
A strong quarter from Apple could spark a short-term recovery in shares despite the bleak outlook for the tech sector. Due to Apple’s weighting in several stock benchmarks, the quarterly results are certainly an important market event. In addition, recent global events have reduced demand for smartphones, so comments on supply chain issues are crucial.
The Street is looking for sales of $94.15 billion and earnings per share of $1.43. If Apple exceeds its ceiling and floor forecasts and provides a positive outlook for China, the markets might recover from the recent downturn. About 3% of Apple’s shares were up before the close.
Nasdaq 100 technical analysis:
The Nasdaq 100 index is struggling around the 20-period SMA. However, the index can gain further if it finds acceptance above the recent swing high.
