CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

Nasdaq 100 soars as tech shares make comeback

S&P 500, Nasdaq 100 and Dow Jones post solid gains on Tuesday; strong April U.S. retail sales data helps improve market sentiment and morale.

After a subdued performance at the start of the week, U.S. stocks rallied on Tuesday, buoyed by improved investor morale, on hopes that the worst is over in terms of the recent sell-off and that risk assets will begin to stabilize in the near term.

At the closing bell, the S&P 500 jumped 2.02% to 4,088, its best level in almost three weeks. The Dow, for its part, rose for the third day in a row, climbing 1.34% to 32,654, boosted by strong performances by Goldman Sachs, Home Depot and Boeing shares. Meanwhile, the Nasdaq 100 led the charge higher on Wall Street, soaring 2.62% to 12,564 on account of broad-based tech sector strength.

Although stocks were already advancing in the pre-market session, gains accelerated after April U.S. retail sales data showed that American consumers kept their wallets open and maintained robust consumption despite rising inflation and falling real income. The solid numbers suggest that household spending, the main driver of economic growth in the country, remains resilient and can continue to support the expansion over the medium term, a good sign for second-quarter GDP and possibly beyond.

In the afternoon, Fed Chair Powell’s comments on the central bank's tightening cycle and his strong resolve to restore price stability sparked volatility and briefly weakened the rally, but the reaction was temporary and ultimately reversed. After all the twists and turns, the three major equity benchmarks ended the session near their daily highs.

Looking ahead, the economic calendar is thin for the rest of the week, so sentiment will likely dictate direction. That said, Tuesday’s upswing is welcome, but it doesn't change the fact that stocks are still down a lot so far this year and that the near-term trend remains negative in terms of technical analysis.

In any case, to further improve sentiment and confirm that this is not another dead cat bounce, we would need to see a follow-through to the topside in the coming days. That will tell us that there is more confidence in the market and in the belief that the Fed will be able to engineer a soft landing of the economy.

Focusing on the Nasdaq 100, despite the recent rebound, the tech index remains in bear market, down more than 25% from its November 2021 peak. For buying momentum to accelerate under current conditions, price must overcome the next critical resistance at 12,645. If we see a clear break above this barrier, the focus shifts up to the psychological 13,000 level, followed by 13,605, the 38.2% Fibonacci retracement of the 2021/2022 selloff.

On the flip side, if sellers return to fade the rip and price turns lower, support lies at 12,200. If this floor is breached, a retest of the 2022 lows cannot be ruled out.

NASDAQ 100 technical chart

This information has been prepared by DailyFX, the partner site of IG offering leading forex news and analysis. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.


This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.

Start trading forex today

Find opportunity on the world’s most-traded – and most-volatile – financial market

  • Trade spreads from just 0.6 points on EUR/USD
  • Analyse with clear, fast charts
  • Speculate wherever you are with our intuitive mobile apps

See an FX opportunity?

Try a risk-free trade in your demo account, and see whether you’re onto something.

  • Log in to your demo
  • Try a risk-free trade
  • See whether your hunch pays off

See an FX opportunity?

Don’t miss your chance – upgrade to a live account to take advantage.

  • Get spreads from just 0.6 points on popular pairs
  • Analyse and deal seamlessly on fast, intuitive charts
  • See and react to breaking news in-platform

See an FX opportunity?

Don’t miss your chance. Log in to take your position.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
liveprices.javascriptrequired
liveprices.javascriptrequired
liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Friday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.