The Bullish Wave:
Traders rode the crest of a bullish wave on Thursday as the tech-heavy Nasdaq 100 witnessed its most impressive six-day rally since late 2022. The index, monitored by the Invesco QQQ Trust, Series 1, surged 2.5%, securing its sixth consecutive positive session. This resurgence comes after a correction that had pushed the index into unfavorable territory at the beginning of the month.
A Technical Triumph:
Thursday’s trading session served as a pivotal moment for the Nasdaq 100, with the index reclaiming its position above the 50-day moving average. This move signifies a compelling comeback after slipping below the key metric on July 24.
Charting the Success:
Tech stocks soared above their 50-day moving averages, registering the most robust six-day rally in nearly two years. The market dynamics have been in favor of the bulls, with traders showing a resilient appetite for buying tech stocks amidst recent turbulence.
The Rise of Semiconductors:
Among tech sectors, semiconductor stocks witnessed remarkable gains, with the VanEck Semiconductor ETF (SMH) surging 16% over the past six sessions. This streak marks a significant rebound since late 2022, reflecting a resurgence in confidence within the semiconductor industry.
The recent alleviation of recession concerns—which had loomed at the start of the month—has been a pivotal driver behind the market recovery. Tech stocks, which bore the brunt of the early-month downturn, have seen renewed vigor amidst improving economic indicators.
Encouraging trends in economic data, including a surprising dip in initial jobless claims and robust retail sales figures for July, have helped dispel fears of an imminent recession. The resilience displayed by the economy post the disappointing July jobs report is a testament to its underlying strength.
Top and Bottom Performers:
Thursday’s trading saw some notable movers in the Nasdaq 100. Leading the charge were Marvell Technology, Inc. (MRVL) with an 8.71% return and Super Micro Computer, Inc. (SMCI) with an 8.59% gain. On the flip side, Mondelez International, Inc. (MDLZ) and O’Reilly Automotive, Inc. (ORLY) experienced declines of -1.32% and -1.24%, respectively.
Despite these ups and downs, the overall sentiment in the tech market remains positive, with traders showing confidence in the sector’s strength and resilience.