The Nasdaq-100 surged to a fresh all-time high of 22,191.37 on Tuesday, as tech stocks continued their relentless climb. The Invesco QQQ Trust (NASDAQ:QQQ), the most popular ETF tracking the index, also notched a new 52-week high of $540, reflecting the broader tech momentum.
Meta’s Unstoppable Streak
Meta Platforms Inc (NASDAQ:META) has been on an absolute tear, closing higher for 20 consecutive trading sessions as of Friday. Although the stock was pulling back on Tuesday, down 3.8% at the time of publication.
Since Jan. 16, META stock has soared 16%, fueling the Nasdaq’s ascent. Given Meta’s decent weighting in the QQQ and other major ETFs, its rally has been a key force propelling both the tech-heavy Nasdaq and the broader market higher.
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AI, Earnings, Economic Resilience
The AI boom continues to be a dominant theme, with Nvidia Corp (NASDAQ:NVDA), Microsoft Corp (NASDAQ:MSFT), and Alphabet Inc (NASDAQ:GOOGL) (NASDAQ:GOOG) leading the charge.
Strong corporate earnings have also played a pivotal role, as companies across the tech sector smash analyst expectations.
Meanwhile, economic indicators such as consumer spending and GDP growth are providing a sturdy foundation for investor confidence.
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The Fed Factor
Investors are betting that the Federal Reserve has reached the peak of its rate hike cycle. Lower interest rates would provide further fuel for the Nasdaq-100’s upward momentum, making growth stocks even more attractive.
Inflation shows signs of easing, fueling optimism that a more dovish Fed could support higher equity valuations.
Technical Breakout With More Upside?
According to Adam Turnquist, Chief Technical Strategist at LPL Financial, the Nasdaq-100 has decisively broken out of its December highs and could have more room to run.
“A minimum technical-based price objective sets up near 23,650,” Turnquist notes.
Additionally, relative strength versus the S&P 500 is improving, pointing to continued Nasdaq leadership.
ETF Winners Riding The Surge
Tech-heavy ETFs are reaping the benefits of the rally. Invesco QQQM (NASDAQ:QQQM) and the First Trust Nasdaq BuyWrite Income ETF (NASDAQ:FTQI) have seen steady gains, while the broader SPDR S&P 500 ETF (NYSE:SPY) has also climbed, albeit at a slower pace.
With tech stocks leading the charge and Meta’s unrelenting rally keeping the momentum alive, the Nasdaq-100 looks poised for more record-breaking action.
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