LIVE MARKETS-Nvidia sparks Nasdaq, but Jackson Hole still awaits
QQQ•Nasdaq steadies as Nvidia lifts futures
The Nasdaq Composite .IXIC edged down 0.08% on Wednesday to finish at 26,130.20, leaving the tech-heavy index off 0.19% for the week and on track for a second straight weekly decline. Even so, the pullback remains relatively modest, with the Composite sitting about 3.6% below its June 2 record close and 3.9% beneath its June 1 intraday high.
Until Nvidia's earnings release, investors appeared content to stay on the sidelines. Through Wednesday's close, the Nasdaq's weekly trading range was shaping up to be its tightest since late March 2024, a sign of just how cautious traders had become ahead of one of the market's most closely watched reports.
That caution is starting to fade. Nvidia NVDA.O shares are surging more than 5% in premarket trading after the company forecast a 70% jump in revenue next fiscal year, while e-mini Nasdaq 100 futures NQc1 are up around 0.8%. Those moves suggest the Composite is set for a firmer start on Thursday.
Support levels to watch on any pullback
On the downside, support remains clustered nearby. The 50-DMA ended Wednesday near 25,950, while the August 24 low came in at 25,910.82. Below that, the rising 100-DMA sits near 25,625. A close below the 100-DMA would darken the technical outlook and put the July 29 low at 24,425 and the rising 200-DMA, now near 24,280, back in play.
Jackson Hole remains the next major test
Still, Nvidia is not the only event on investors' radar. Attention will quickly shift to Fed Chair Kevin Warsh's speech at Jackson Hole on Friday, which could determine whether the post-earnings enthusiasm has staying power or whether traders revert to a wait-and-see approach.
From a technical perspective, the Nasdaq survived an important test earlier this week, holding support at its 50-day moving average (DMA) on Monday.
If the rally gains traction, the first upside target is the August 18 gap at 26,626.38. Beyond that, traders will be watching the August 13 intraday high at 26,875.52. A move above the record intraday peak would bring a key weekly Gann line, currently near 28,000, into view.
