Stocks have given back a large portion of overnight gains as market volatility continues to remain elevated. Nasdaq 100 futures rallied roughly 9% off of last Thursday’s intraday low, culminating in a premarket peak today of 11431.75. Markets continue to oscillate as we head into the corporate earnings season. Bank earnings have largely been impressive, which sets the table for tech earnings over the coming weeks.
Market participants will likely be looking ahead to Netflix earnings which are slated for after the closing bell. Subscriber growth will be under the market microscope like it always is, while commentary on the subscription that includes ads will also be top of mind. Tech companies have started to cut back following an impressive 2-year run during the Covid-19 pandemic, with many slashing headcount and cutting capex as recession fears grow.
NQ appears to be benefitting from a lighter-than-usual US economic calendar, with few data points on offer to “spook” equities. It remains to be seen whether this rally has any legs, or if it is just short covering and hedges coming off the books following last week’s CPI print. If ascending trendline support continues to hold, NQ may look to make an advance into the 11700 area that marks the monthly high.