The Nasdaq 100 has reclaimed the psychologically significant 25,000-point level, but its ability to hold this ground faces a critical test today. The release of February’s U.S. inflation figures will determine whether the recent recovery has staying power or if renewed interest rate anxieties will grip the market.
All Eyes on the Consumer Price Index
The immediate trajectory for the tech-heavy index hinges on the inflation report scheduled for release at 14:30 German time. A moderate reading would likely support the current positive momentum, whereas unexpectedly high numbers could instantly reignite the Federal Reserve’s interest rate debate. A supportive backdrop emerged yesterday as yields on the benchmark 10-year U.S. Treasury note eased to 4.15%, alleviating some pressure on the valuation of technology equities.
Oracle Provides a Post-Market Boost
After the closing bell, Oracle delivered a significant positive catalyst. The database giant reported third-quarter results that substantially exceeded expectations, highlighted by an 84% revenue surge in its cloud infrastructure business. This performance propelled its shares nearly 8% higher in extended trading, offering crucial support for tech futures at today’s open.
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Sector Performance Shows Divergence
During the regular trading session on Tuesday, market sentiment was initially cautious before declining oil prices bolstered investor risk appetite. A notable drop in the CBOE Volatility Index (VIX) signaled a calmer market environment. Gains were concentrated in the healthcare and semiconductor sectors. Vertex Pharmaceuticals led the advance, climbing over 8%, while Micron Technology and Nvidia also posted solid gains. Conversely, software stocks faced notable pressure, with AppLovin declining more than 8%.
Technical Perspective
From a technical standpoint, the index has successfully defended its medium-term foundation. The 25,000-point level now serves as immediate support, with the more substantial 200-day moving average around 24,100 points providing a solid base. The market’s next sustained move will be dictated by the fundamental picture emerging from today’s inflation data.
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