NASDAQ Price Forecast: Anticipating Market Movements Amid Earnings and Fed Speculations

On Tuesday, the NASDAQ price forecast remains bullish above $15,500 mark as Wall Street braces for a subdued start, focusing keenly on forth

Written by: Arslan Butt • Tuesday, February 6, 2024 • 2 min read

• Last updated: Tuesday, February 6, 2024

NASDAQ Price Chart - Source: TradingView

On Tuesday, the NASDAQ price forecast remains bullish above $15,500 mark as Wall Street braces for a subdued start, focusing keenly on forthcoming heavyweight earnings and seeking insights from Federal Reserve policymakers on possible rate cut timings.

Eli Lilly and GE HealthCare Technologies have notably surged in premarket trading, buoyed by optimistic profit forecasts and robust demand for key products. DuPont de Nemours also captures attention with its earnings beat and shareholder-friendly announcements, underscoring a vigilant market eye on business outlooks amidst rising borrowing costs and lingering economic slowdown fears.

Eli Lilly forecasts a surge in profits, buoyed by demand for Zepbound and Mounjaro.
GE HealthCare Technologies impresses with stellar fourth-quarter results.
DuPont announces a new share repurchase program and dividend increase, reflecting corporate confidence.

Market Dynamics and Federal Reserve’s Stance

With half of the S&P 500 firms already reporting, a significant 80.4% have exceeded earnings expectations, hinting at a resilient fourth-quarter performance. This trend, coupled with the anticipation of growth in earnings and revenue, challenges the recession narrative prevalent last year.

However, Federal Reserve officials, including Chair Jerome Powell, have tempered expectations for immediate policy easing, emphasizing a cautious approach amid strong labor and economic indicators.

S&P 500 earnings projection shows a 7.8% year-on-year increase for Q4.
Fed policymakers, including Loretta Mester, are closely watched for interest rate cues.
Market odds favor a rate cut by mid-year, with intense scrutiny on Fed’s future moves.

Investor Focus and Key Movements

Investors also digest mixed signals from companies like Palantir Technologies, reporting profitability and robust AI demand, against FMC Corp’s profit forecast disappointment. Gartner’s below-estimate annual outlook contrasts with Centene’s revenue beat, illustrating the varied landscape of corporate earnings and its impact on market sentiment.

Palantir’s profit forecast and strong AI demand spike shares by 19.4%.
FMC Corp’s outlook disappointment leads to a 13.6% share price drop.
Centene outperforms fourth-quarter revenue estimates, bolstering investor optimism.

A Cautiously Optimistic Outlook

As NASDAQ navigates through these intricate market dynamics, the interplay between corporate earnings, Federal Reserve’s policy signals, and macroeconomic indicators will critically influence its trajectory. With a current positioning that suggests resilience and growth potential, market participants remain alert to emerging trends and policy shifts that could sway the NASDAQ’s direction.

NASDAQ Price Forecast: Technical Outlook

The NASDAQ’s recent performance reflects a slight downturn, closing at 15,597.68, down by 0.17%. The current technical outlook reveals a pivot point at $15,634.49, suggesting potential resistance levels at $15,758.96, $15,860.32, and $15,956.61.

These thresholds could impede upward momentum unless surpassed. Conversely, support levels are $15,411.80, $15,277.49, and $15,167.06, offering a buffer against further declines. The Relative Strength Index (RSI) stands at 58, indicating a neutral to slightly bullish sentiment, supported by the 50-day Exponential Moving Average (EMA) at $15,383.52.

NASDAQ Price Chart - Source: TradingView

A notable technical pattern, the triple top resistance near the $15,635 mark, alongside a 50% Fibonacci retracement at the $15,170 level, suggests a critical juncture.

The EMA and RSI endorse a bullish trend, indicating that a breakthrough above $15,634.49 could catalyze a buying wave in NASDAQ, highlighting a cautiously optimistic outlook for the index.

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies
Open a FREE Trading Account

ABOUT THE AUTHOR See More

Arslan Butt

Lead Markets Analyst – Multi-Asset (FX, Commodities, Crypto)

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.