Nasdaq 100 Breaks 3-Day Losing Streak As Tech Stocks Rebound Ahead Of Earnings Week

Author: Piero Cingari | April 22, 2024 04:28pm

The Nasdaq 100 index, as tracked by the Invesco QQQ Trust (NASDAQ:QQQ), ended Monday 1% higher, breaking a three-day losing streak as traders prepare for a crucial week of earnings reports from some of the tech sector’s most influential names.

This week’s earnings lineup features four Magnificent Seven giants like Tesla Inc. (NASDAQ:TSLA), which will report on Tuesday, followed by Meta Platforms Inc. (NASDAQ:META) on Wednesday, and both Microsoft Corp. (NYSE:MSFT) and Alphabet Inc. (NASDAQ:GOOGL) slated for Thursday.

PDD Holdings Inc. (NASDAQ:PDD) led Monday’s rally among the Nasdaq 100 stocks by rallying over 9%, followed by Nvidia Corp. (NASDAQ:NVDA), which climbed 4.4% after experiencing a sharp 10% drop on Friday. The chip sector, represented by the VanEck Semiconductor ETF (NYSE:SMH) showed strength, advancing 1.9% for the day.

Last week marked the Nasdaq 100 Index’s largest weekly drop in over 17 months, dragging the index to its longest losing streak since December 2022.

Also read: ‘Apple Shot Itself In The Foot:’ Telegram Founder Says Cupertino iPhone Market Share In China Will ‘Keep Shrinking’

UBS Cautions In Tech Sector

UBS Group AG's chief U.S. equity strategist Jonathan Golub has advised caution on tech stocks.

As reported by Bloomberg, UBS downgraded its stance on the ‘Big 6’ technology giants—Alphabet Inc., Apple Inc. (NASDAQ:AAPL), Amazon.com Inc. (NASDAQ:AMZN), Meta Platforms Inc., Microsoft Corp., and Nvidia Corp.— from Overweight to Neutral amid slowing earnings momentum.

Golub suggests that the downturn in tech earnings momentum will be driven by wider cyclical challenges, not by worries about valuations or the industry's prospects in artificial intelligence.

Read also: Microsoft ‘In Unique Position To Scale Gen-AI Revenue,’ Goldman Sachs Says Ahead Of Q3 Earnings

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Posted In: AAPL AMZN GOOGL META MSFT NVDA PDD QQQ SMH TSLA