- Markets rise on reports on Iran offer to re-open reopen the Strait
- Some fatigue building on constant back and forth
- Big tech faces big test amid rising AI expenditure
- NAS100 hits fresh all-time highs, gaining 15% month-to-date
Recent developments have sent investors on an emotional rollercoaster…
- Over the weekend, Trump cancelled peace talks with Iran in Pakistan
- On Saturday evening, he was the target of another assassination attempt
Now there are fresh reports that Iran has offered the US a proposal to re-open the Strait of Hormuz!
And in response - European/US equity markets are flashing green, but oil benchmarks have offered a muted response.
This could be a classic case of market fatigue given how all the positive announcements in the past have led to disappointment.
Nevertheless, this cautious optimism may keep US equities near record levels ahead of another BIG WEEK for markets.
NAS100 – Big tech set for big gains?
DID YOU KNOW…
FXTM’s NAS100 hit a fresh all-time high at 27342 last Friday, pushing April’s gains to 15%.
CAN US EQUITY BULLS MAINTAIN GAINS?
Ongoing geopolitical risk could create some headwinds down the road…
But a solid set of earnings from the biggest companies in the world may keep the bull party alive.
Five of the so-called “Magnificent” 7 tech giants with a combined market cap of almost $16 trillion are set to publish their results in the week ahead.
The combined weight of Alphabet, Amazon, Meta, Microsoft and Apple makes up over 40% of the NAS100 weight!!!
Note: Alphabet, Amazon, Meta Platforms and Microsoft have a combined AI expenditure of $650 billion this year. They face rising margin and cost pressures that have been magnified by the war in Iran.
Nevertheless, whatever the outcome of the earnings - it may translate to massive price swings.
POTENTIAL SCENARIOS:
- BULLISH – A solid set of results and optimistic forward guidance from tech titans may propel the NAS100 higher. A strong move above 27500 could open a path toward 28000.
- BEARISH – Should results disappoint and concerns be expressed about the earnings outlook, the NAS100 could fall. Weakness below 27500 could signal a decline back toward 26850.
