A powerful surge from two of the world’s most influential technology companies has propelled the Nasdaq 100 to remarkable new heights, delivering a stunning conclusion to the trading month. Investor sentiment has undergone a dramatic reversal, shifting from the recent anxiety surrounding Meta’s performance to a wave of market euphoria, driven by outstanding quarterly results from Amazon and Apple.
Apple Joins the Rally with Bullish Forecast
Adding significant momentum to the sector, Apple contributed to the market’s upward trajectory. The iconic iPhone manufacturer posted robust quarterly earnings, bolstered by an optimistic sales forecast for the crucial holiday season. This positive outlook translated into a solid share price increase of 2-3%, providing additional tailwinds for the broader technology landscape.
Amazon’s Cloud Division Ignites the Rally
The e-commerce behemoth delivered precisely what the market had been anticipating: a powerful resurgence in its cloud computing segment. Amazon Web Services (AWS) reported a staggering 20% growth rate, decisively surpassing Wall Street’s projections. The market’s response was immediate and forceful, with the company’s shares soaring nearly 13% in pre-market trading, thereby lifting the entire index.
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Plunging Fear Gauge Reflects Renewed Confidence
Market sentiment received further confirmation from a significant drop in the CBOE Volatility Index (VIX), often regarded as the market’s “fear gauge.” The VIX plummeted more than 4% to settle at 16.18 points, a clear indicator that investors are demonstrating a renewed appetite for risk. This optimistic breadth was evident across the market, where advancing issues outnumbered decliners by a ratio of 1.6 to 1.
From a technical analysis perspective, the Nasdaq 100 appears well-positioned for continued strength. With a Relative Strength Index (RSI) reading of approximately 59, the index maintains room for further advancement before entering overbought territory. A critical resistance level at 26,340 points now appears within reach; a decisive breakthrough at this level could potentially pave the way for a climb toward 26,620 points.
Sustaining the Momentum Through Year-End
Following the market shock triggered by Meta’s results last week, today’s trading session demonstrates the remarkable resilience of equity markets. The formidable performance from heavyweights Amazon and Apple has once again underscored their substantial influence over the entire index. As the year approaches its final act, a crucial question emerges for investors: Do these technology giants possess sufficient momentum to stage a magnificent year-end performance, or has this rally already peaked, setting the stage for an impending correction?
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