The Nasdaq 100 Index is navigating a tumultuous landscape marked by strong corporate earnings juxtaposed with escalating geopolitical tensions and significant shifts within the technology sector. Oil prices have surged over 10% weekly due to the ongoing U.S.-Iran standoff, intensifying inflationary pressures that complicate the Federal Reserve’s monetary policy decisions. While Intel’s impressive quarterly results propelled its stock up 20%, software companies like IBM and ServiceNow faced steep declines, raising concerns about AI’s impact on traditional software models.

This divergence highlights a broader trend in the tech sector, where the iShares Semiconductor ETF has enjoyed a remarkable 17-day winning streak, contrasting sharply with a 16% year-to-date drop in software stocks. The Nasdaq 100 is currently in an uptrend, reaching around 27,095 points, but the RSI(14) indicator suggests it may be overbought, indicating potential for a correction.

Market professionals should monitor these conflicting signals closely, as the tech sector’s transformation and geopolitical developments could significantly influence future trading strategies.

Source: xtb.com