🔽 US100 drops almost 2%!

Profit-taking on tech shares is pushing Nasdaq lower

Nvidia reported a stellar earnings report for fiscal-Q2 2024 yesterday. EPS turned out to be around 25% higher than expected while sales beat expectations by around 20%. Also, the company struck an upbeat note when it comes to future outlook, thanks to the AI segment. Nvidia shares have gained around 8% in the after-hours trading and launched today's cash session with a big bullish price gap. However, gains began to be erased following the cash session launch and Nvidia is trading around 3% higher on the day at press time as profit-taking following the latest rally started to set it.

Interestingly, Nasdaq is not benefiting from rather dovish comments from Fed's Harker. Harker said that he thinks the Fed has done enough and that policy is already restrictive. A key event of the week - Fed Chair Powell's speech at Jackson Hole - is scheduled for tomorrow at 3:00 pm BST.

Profit-taking on Nvidia can be seen spilling over to other tech shares, and it is fuelling sell-off on Nasdaq today. US100 is trading almost 2% lower at press time, dropping from around 15,400 to 15,100 pts. This means that yesterday's gains on the index have been almost completely erased already. Should we see declines deepen further, a near-term support zone to watch can be found in the 14,800 pts area, near latest local lows.

Source: xStation5