The Nasdaq-100 surged to a fresh all-time high of 22,191.37 on Tuesday, as tech stocks continued their relentless climb. The Invesco QQQ Trust
Meta's Unstoppable Streak
Meta Platforms Inc
Since Jan. 16, META stock has soared 16%, fueling the Nasdaq's ascent. Given Meta's decent weighting in the QQQ and other major ETFs, its rally has been a key force propelling both the tech-heavy Nasdaq and the broader market higher.
AI, Earnings, Economic Resilience
The AI boom continues to be a dominant theme, with Nvidia Corp
Strong corporate earnings have also played a pivotal role, as companies across the tech sector smash analyst expectations.
Meanwhile, economic indicators such as consumer spending and GDP growth are providing a sturdy foundation for investor confidence.
The Fed Factor
Investors are betting that the Federal Reserve has reached the peak of its rate hike cycle. Lower interest rates would provide further fuel for the Nasdaq-100's upward momentum, making growth stocks even more attractive.
Inflation shows signs of easing, fueling optimism that a more dovish Fed could support higher equity valuations.
Technical Breakout With More Upside?
According to Adam Turnquist, Chief Technical Strategist at LPL Financial, the Nasdaq-100 has decisively broken out of its December highs and could have more room to run.
"A minimum technical-based price objective sets up near 23,650," Turnquist notes.
Additionally, relative strength versus the S&P 500 is improving, pointing to continued Nasdaq leadership.
ETF Winners Riding The Surge
Tech-heavy ETFs are reaping the benefits of the rally. Invesco QQQM
With tech stocks leading the charge and Meta's unrelenting rally keeping the momentum alive, the Nasdaq-100 looks poised for more record-breaking action.
