Nasdaq 100 Outlook: UT100 Gains as Tech Stocks Rebound Ahead of Key U.S. Inflation Data
The Nasdaq 100 (UT100) posted gains as U.S. stocks closed higher on Wednesday, supported by renewed momentum in the technology sector. The Nasdaq Composite rose by 0.8%, while the S&P 500 gained 0.6% and the Dow Jones Industrial Average advanced by 0.3%. However, some of these gains were trimmed following the release of the Federal Reserve’s latest meeting minutes.
Fed Minutes Highlight Policy Division
Minutes from the Federal Reserve’s January meeting revealed diverging views among policymakers regarding the future direction of interest rates. While some officials remain open to additional rate hikes if inflation proves persistent, others support the possibility of rate cuts later this year.
Most policymakers voted in late January to keep interest rates unchanged for the first time since July. However, expectations for near-term rate cuts have weakened following stronger-than-expected inflation and employment data.
Investors are now turning their attention to the upcoming release of the December Personal Consumption Expenditures (PCE) Price Index — the Fed’s preferred measure of inflation — for further guidance on future monetary policy decisions.
Technology Stocks Lead the Rebound
Technology stocks helped lift the Nasdaq 100, with Nvidia (NVDA) rising 1.6% after Meta (META) announced a major AI chip purchase. Meanwhile, shares of Micron (MU) and Western Digital (WDC) also moved higher, contributing to broader market gains.
Nasdaq 100 Technical Analysis
From a technical standpoint, a break above the first resistance level at 25,246.70 (R1) could open the door for further upside toward 25,539.32 (R2) and 25,831.37 (R3).
On the downside, a drop below the key support level at 24,644.38 (S1) may increase bearish pressure, potentially pushing the index toward 24,362.73 (S2) and 24,064.99.
As traders assess economic data and central bank policy signals, the Nasdaq 100 remains sensitive to developments in inflation trends and interest rate expectations in the near term.
