CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open an account
☰
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open an account
✖

Nasdaq 100 Forecast: QQQ rises as chip stocks rebound, Netflix earnings in focus

Article By: ,  Senior Market Analyst
April 18, 2024 3:06 PM

US futures

Dow futures 0.23% at 37825

S&P futures 0.20% at 5071

Nasdaq futures 0.22% at 17532

In Europe

FTSE 0.04% at 7859

Dax 0.8% at 17750

  • Stocks inch higher after recent losses
  • Chip stocks recover after TSMC earnings impress
  • Netflix reports Q1 earnings later
  • Oil falls further on demand worries

Stocks inch higher after recent losses

US stocks are pointing to a modestly higher start after losses earlier in the week, as chip stocks rebounded and despite stronger than forecast jobless claims data.

Stocks fell from their record highs last month as investors became increasingly convinced that the Federal Reserve could keep rates high for longer. Recent data has highlighted the robustness of the US economy, while inflation has also ticked higher, raising doubts over when the Fed may start cutting interest rates.

Earlier in the week, Federal Reserve chair Jerome Powell adopted a more hawkish tone, highlighting that the lack of progress towards cooling inflation could delay cutting rates.

Today, US jobless claims highlighted the ongoing resilience of the labor market after jobless claims held steady at 212k, stronger than the 215k forecast.

Attention will be on Federal Reserve speakers later today, and further hawkish commentary could pull the USD lower. Yesterday Fed Governor Bowman said that progress on lowering inflation may have stalled. She added that it remains to be seen whether rates were high enough to get inflation back to 2%.

Amid a quiet economic calendar, attention is on corporate earnings, with chip stocks rebounding after recent losses.

Corporate news

TSMC is also in focus. The world's largest contract chip posted impressive Q1 results, posting a 9% rise in net profits, beating forecasts thanks to a surge in AI demand, which has helped Q1 revenue rise 16.5%. TSMC's earnings are primarily seen as a bellwether for global chip demand.

Netflix is due to report earnings after the close and is expected to confirm that it is the undisputed leader in TV streaming. Expectations are for an additional 5 million subscribers in Q1, almost three times the 1.8 million it saw in the same period last year, but a marked slowdown from the previous quarter. EPS is expected to be $4.16, up from $2.88, and revenue is expected to rise to $8.54 billion from $8.16 billion.

Nasdaq 100 forecast – technical analysis.

Nasdaq 100 broke out of its holding pattern, taking out support at 17800 and falling to a low of 17500. Sellers, supported by the RSI below 50, could look to break below the 100 SMA to test 17160, the February low. Should buyers defend 17500, any recovery would need to rise above 17800 resistance and 18000, the 50 SMA, to extend gains towards 18466 and fresh all-time highs.

FX markets – USD steadied, GBP/USD rises

The USD is steady, rising from session lows after the jobless claims data. Despite yesterday’s weakness, the near-term outlook is still supportive of the USD, given the sticky inflation and the prospect of higher rates for a longer.

EUR/USD is falling amid expectations that the ECB will cut rates in June. Vide President Luis De Guindos said today that it would be appropriate to cut rates if inflation continues to cool.

GBP/USD is rising, but gains could be limited after comments from Bank of England governor Andrew Bailey yesterday. He said he saw inflation on the right trajectory for a rate cut this year. The market is currently pricing in two rate cuts from the central bank starting either in August or September.

Oil slips on demand worries

Oil prices fell over 3% yesterday and are extending the sell-off today amid rising concerns over the oil demand outlook and as Middle East tensions ease slightly.

US crude oil stockpiles rose more than expected to 2.7 million barrels, almost double the 1.4 million forecast. The data comes amid increasing worries about the demand outlook in the US, the largest consumer of oil,  amid the prospect of higher interest rates for longer, which could slow economic growth.

Meanwhile, the risk premium on oil has fallen as the market is more convinced that Israel will not launch a retaliation attack on Iran following last weekend's attack.

 

 

StoneX Europe Ltd may make third party material available on this website which may contain information included but not limited to the conditions of financial markets. The material is for information purposes only and does not contain, and should not be construed as containing, investment advice and/or investment recommendation and/or an investment research and/or an offer of or solicitation for any transactions in financial instruments; any decision to enter into a specific transaction shall be made by the client following an assessment by him/her of their situation.

StoneX Europe Ltd makes no representation or warranty and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or other information supplied. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. We are not under any obligation to update any such material. Any opinion made may be personal to the author and may not reflect the opinion of StoneX Europe Ltd.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Please ensure you fully understand the risks involved by reading our full risk warning.

FOREX.com is a trading name of StoneX Europe Limited, and FOREX.com/ie is a domain operated by StoneX Europe Ltd, a member of StoneX Group Inc. StoneX Europe Ltd, is a Cyprus Investment Firm (CIF) company registered to the Department of Registrar of Companies and Official Receiver with a Registration Number HE409708, and authorized and regulated by the Cyprus Securities & Exchange Commission (CySEC) under license number 400/21. StoneX Europe is a Member of the Investor Compensation Fund (ICF) and has its registered address at Nikokreontos 2, 5th Floor, 1066 Nicosia, Cyprus.

StoneX Europe Limited is registered with the German Federal Financial Supervisory Authority (BaFin). BaFin registration ID: 10160255

FOREX.com is a trademark of StoneX Europe Ltd, a member of StoneX Group Inc.

The statistical data and the awards received refer to the Global FOREX.com brand.

This website uses cookies to provide you with the very best experience and to know you better. By visiting our website with your browser set to allow cookies, you consent to our use of cookies as described in our Privacy Policy.

Through passporting, StoneX Europe is allowed to provide its services and products on a cross-border basis to the following European Economic Area ("EEA") states: Austria, Bulgaria, Croatia, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Netherlands, Norway, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden.

Additionally, StoneX Europe Ltd is allowed to provide Investment and Ancillary Services to the following non-EU jurisdiction: Switzerland.

StoneX Europe Ltd products, services and information are not intended for residents other than the ones stated above.

Tied Agent Information: KQ Markets Europe Ltd with Company No. HE427857.
Address: Athalassas 62, Mezzanine, Strovolos, Nicosia Cyprus.
Services Provided: Reception and Transmission of Orders.
Commencement Date: 06/12/2022
Website: KQ Markets - CFD Trading | KQ Markets

We may pay inducements, such as commissions or fees, to affiliates or third-party introducers for referring clients to us. This is in line with regulatory guidelines and fully disclosed where applicable.

StoneX Europe Ltd may make third party material available on this website which may contain information included but not limited to the conditions of financial markets. The material is for information purposes only and does not contain, and should not be construed as containing, investment advice and/or investment recommendation and/or an investment research and/or an offer of or solicitation for any transactions in financial instruments; any decision to enter into a specific transaction shall be made by the client following an assessment by him/her of their situation. StoneX Europe Ltd makes no representation or warranty and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or other information supplied. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. We are not under any obligation to update any such material. Any opinion made may be personal to the author and may not reflect the opinion of StoneX Europe Ltd.

© FOREX.COM 2025