The Nasdaq 100 continues to lead the rally, approaching its all-time highs. So far this quarter, it is up more than 15%! Recent trading sessions share a positive trend line, and the index is up nearly 4% just for the month of June! Analysts note the Nasdaq 100 is on track for its third month in a row of positive returns. This trend has been sending a wave of optimism through the tech-heavy index.
As of Tuesday, the Nasdaq 100 was up more than 1% that day alone. This remarkable advance puts it within a hair over a point of its all-time high watermark. This momentum has set expectations sky high — reeling in investors and market watchers alike. Just after 6 p.m. ET Tuesday night, futures on the tech-heavy Nasdaq 100 fell about 0.1%. This is an indication of a modest pullback after a very bullish trading day.
The broader market reflected positive sentiment. The Nasdaq Composite jumped over 1%, as did the S&P 500, which had an advance of more than 1%. Dow Jones Industrial Average futures fell by 26 points, a loss of 0.1%. This is a sign of a major divergence in performance between the big three indices.
Even with the booming stock markets, oil prices have gone through the wringer in recent days. West Texas Intermediate crude futures dropped by 6% on Tuesday. This decrease was part of a broader plummet in oil prices that has persisted over the past two days. This recent downturn in energy markets is likely to be felt across the economy, as investors continue to weigh the effects on an emerging economic recovery.
AeroVironment had a notable bright spot, with CEO continuing optimistic outlook. The company expects its full-year earnings per share to come in between $2.80 and $3.00. FedEx shares were down 4.7% after beating fiscal fourth-quarter earnings expectations. The mixed results underscore the fragility that can come along with the exuberance of a rising market.
Commenting on the resilience seen in today’s trading climate, market specialists take it from investment strategist Joe Terranova, who wrote this very T due to his great conviction in the market’s health,
“I use the world ‘resiliency’; I will use that word over and over again because this is one of the most resilient markets that I have ever witnessed.”