Tech Earnings Fuel Market’s Spectacular Rise

As the opening bell rang, the Dow Jones futures turned downward, causing investors’ concern. However, the Nasdaq saw a surge in strength thanks to impressive earnings from Netflix and a boost in technology stocks. The S&P 500 remained uncertain as the market struggled to find a clear direction. The diverging performances of these two indexes created a tense atmosphere for traders.

As some of the biggest tech players held steady, the Dow Jones was pulled up by the Nasdaq’s upward momentum. Heavyweights like Netflix, Google, and Apple were at the forefront of this surge. Netflix, in particular, generated excitement with its announcement that advertising would drive a significant increase in revenue throughout 2023. This news prompted many experts to revise their buy ratings for the stock and express optimism about its long-term advertising potential.

Netflix set the tone as the first major tech company to release earnings, and its report gave Wall Street reason to be optimistic about the rest of the tech industry. In particular, the numbers for advertising revenue caught attention as it is often seen as a bellwether for the sector. If one company is performing well in advertising, others will likely do so.

Breaking Through Daily Mean Paves Way for Clear Skies Ahead

As investors ramped up their buying activity, the market faced a crucial test at the 3,830 level of the 21-day exponential moving average (EMA). In earlier trading this week, the market had faced strong resistance at this level, but the buying volume proved too strong today and broke through the resistance.

Key Levels and Must-Watch Events for Next Week’s Market

As we look ahead to next week, there are some key levels and market events to keep an eye on. The level of 4,000 remains a key resistance point that the market will need to overcome if it wants to continue its upward trajectory. If the market can break through 4,000 and hold above it, it could signal further gains. However, resistance around this level could keep prices contained until new market catalysts emerge. On the other hand, a hold of the 21-day EMA on a pullback can indicate some profit-taking, but it does not necessarily mean a market-wide sell-off. As a result, we could see choppy, volatile action in the market in the run-up to economic events.

• On Tuesday, the S&P U.S. manufacturing Purchasing Managers Index (PMI) will be released before the market opens at 9:45 a.m. Eastern.
• Thursday will contain the weekly Initial and Continuing Jobless claim numbers to be released at 8:30 a.m. Eastern. 
• Friday will wrap the week up with the Personal consumption expenditures (PCE) price index data at 8:30 a.m. Eastern.

Nasdaq Takes the Lead as Market Soars Higher

The Nasdaq and the S&P 500 were positive to close the session. The S&P 500 futures closed up 1.80%, gaining 70 points, while the Nasdaq futures closed up 2.74%, adding 310 points. The Dow Jones futures followed, closing up 0.97%, an increase of 321 points.