Nasdaq 100 closes with marginal gains driven by Constellation Energy and Booking Holdings

  • The Nasdaq 100 is up 0.20% today, trading at the time of writing above 21,829.
  • Booking Holdings (BKNG) shares gain 4.29% daily, reaching two-day highs.
  • Constellation Energy (CEG) shares rose 4.20% on the day, registering a new all-time high at $352.00.

The Nasdaq 100 hit a daily high of 21,837, attracting sellers who dragged the index to a daily low of 21,712. Currently, the Nasdaq 100 is trading at 21,891, gaining 0.20% on Thursday.

Booking Holdings leads the day’s gains on the Nasdaq 100

Online travel company Booking Holdings (BKNG) rises 4.29% daily, ending two consecutive sessions of losses and reaching two-day highs of $4,828.78. BKNG will release its earnings report on February 20 in which it is expected to obtain revenues of $5.18 billion and earnings per share of $36.09.

On the other hand, Constellation Energy (CEG) shares gained 4.12% today, registering their seventh consecutive day on the rise, establishing a new all-time high at $352.00. CEG will release its quarterly report on February 21 as market consensus projects revenue of $6.08 billion and earnings per share of $2.11.

Technical levels on the Nasdaq 100

The Nasdaq 100 reacted higher on short-term support given by the January 21 low at 21,384, in confluence with the 61.8% Fibonacci retracement. The next key support zone is at 20,532, the January 13 pivot point. To the upside, important resistance is at 22,131, December 16, 2024 high.

Nasdaq 100 4-hour chart

Nasdaq FAQs

Nasdaq is an American stock exchange that began as an electronic stock ticker. At first, the Nasdaq only offered over-the-counter (OTC) stock listings, but it later became an exchange as well. By 1991, the Nasdaq had grown to represent 46% of the entire US stock market. In 1998, it became the first US exchange to offer online trading. The Nasdaq also produces several indices, the most comprehensive of which are the Nasdaq Composite, which represents the more than 2,500 Nasdaq securities, and the Nasdaq 100.

The Nasdaq 100 is a large-cap index composed of 100 non-financial companies on the Nasdaq Stock Exchange. Although it only includes a fraction of the thousands of stocks on the Nasdaq, it explains more than 90% of the movement. The influence of each company in the index is weighted based on market capitalization. The Nasdaq 100 includes companies highly focused on technology, although it also includes companies from other sectors and from outside the United States. The Nasdaq 100’s average annual return has been 17.23% since 1986.

There are several ways to trade the Nasdaq 100. Most retail brokers and spread betting platforms offer Contracts for Difference (CFD) betting. For long-term investors, exchange-traded funds (ETFs) operate like stocks that mimic the movement of the index without the investor having to buy all 100 companies that comprise it. An example of an ETF is the Invesco QQQ Trust (QQQ). Nasdaq 100 futures contracts allow you to speculate on the future performance of the index. Options provide the right, but not the obligation, to buy or sell the Nasdaq 100 at a specific price (strike price) in the future.

There are many factors that drive the Nasdaq 100, but primarily it is the aggregate performance of its component companies, revealed in their quarterly and annual earnings reports. US and global macroeconomic data also contribute, influencing investor sentiment, which if positive, drives earnings. The level of interest rates, set by the Federal Reserve (Fed), also influences the Nasdaq 100, as it affects the cost of credit, on which many companies largely depend. Therefore, the level of inflation can also be an important factor, as well as other parameters that influence the Federal Reserve’s decisions.

Source: Fx Street

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