Nasdaq 100, Nvidia, Semiconductors, FAANG Stocks, Federal Reserve – Talking Points
- Tech shares outperform on Thursday after Nvidia powers chipmakers higher
- FAANG stocks shine yet again, holding up equities despite weak breadth
- Markets continue to await news on Biden’s choice for Federal Reserve Chair
Tech shares outperformed on Thursday as FAANG names (Facebook, Apple, Amazon, Netflix, Google) and chipmakers pushed markets back toward all-time highs. Risk-on sentiment was apparent as the US Dollar cooled slightly and the 10-year U.S. Treasury yield slipped by 2 basis points. Nvidia earnings set the tone for the session, with the chipmaker beating comfortably on revenue and earnings estimates, while also improving guidance for the current quarter. Shares jumped 8%, which provided a notable boost to other chipmakers. Advanced Micro Devices (AMD) jumped by 2.4%, Micron Technology (MU) gained 2%, and Qualcomm added over 1%.
Nvidia Daily Chart
Chart created with TradingView
Apple shares raced higher on Thursday by 2.9% following a report related to Apple’s efforts to develop an electric vehicle. Apple’s gain saw the S&P 500 notch its 66th all-time high in 2021. Also gaining was Amazon, with the company benefitting from continued retail momentum and the opening of its first cashier-less coffee shop. The theme in U.S. equities continues to be rotation, as the indices appear willing to continue rotating who takes the top spot on a daily basis.
Nasdaq 100 1-Hour Chart
Chart created with TradingView
Market participants continue to await any news on the nominee for Chair of the Federal Reserve. President Biden revealed in remarks earlier this week that he plans to make a decision around Thanksgiving, which is next Thursday in the U.S. It would appear that the decision is between current Fed Chair Jerome Powell, and FOMC Governor Lael Brainard. At the time of writing, betting markets give Jerome Powell a hefty advantage in the race for the Fed Chair.
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— Written by Brendan Fagan, Intern
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