The Nasdaq 100 Stock Index ($IUXX) (QQQ) rallied to a 1-year high today and has recovered half of its 1-1/2 year long selloff from a record high in November 2021 down to a 2-3/4 year low in October 2022. Additional gains look promising if the Nasdaq can maintain its upward momentum and climb above current resistance at 50% of its 1-1/2 year decline.
Expectations that the Fed is near the end of its rate-hiking campaign have been a key driver in the recent rally in the Nasdaq. Also, earnings results from the mega-cap technology stocks have mostly been better than expected this earnings season, bolstering expectations that the group can continue delivering strong growth. In addition, investors have also gravitated toward the mega-cap tech stocks as a safe haven from the U.S. regional banking turmoil and the debt-ceiling standoff.
