Facts
- The US100 futures contract is gaining over 1%, reaching 21,751 points as of 10:30 GMT AM on Thursday, May 29.
- Nvidia shares are up approximately 6% in pre-market trading at 10:30 AM GMT, following the release of quarterly earnings.
- A number of technology sector stocks are trading higher ahead of the market open, including Broadcom, Meta Platforms, and others tied to the AI trend.
- The U.S. Court of International Trade has rejected the tariff changes introduced by Donald Trump.
Recommendation
Long position on US100 at market price
- Take profit: 22,300
- Stop loss: 21,700
Market Outlook
The strong upward reaction of the market to Nvidia’s fiscal Q1 2026 financial results suggests that the next target for the Nasdaq 100 could be a test of the historic highs from February 2025. The company emphasized that the AI technology revolution is progressing uninterrupted, despite being impacted by export restrictions on its H20 chips to the Chinese market. The stock is currently up nearly 5% in pre-market trading on Wall Street.
Ongoing improvement in investor sentiment across the tech sector is fueling broader optimism. This, combined with the uncertain fate of the trade war that investors had recently feared, may drive the index toward levels close to its winter 2025 peak. Risk appetite may also be supported by the decision of a U.S. federal court, which ruled that Donald Trump lacked the authority to impose emergency trade tariffs. According to the ruling, only Congress has the constitutional right to impose trade-related taxes.
Based on the above arguments, we recommend initiating a technical long position at market price. At the same time, we advise placing a protective stop-loss order to minimize the risk of potential losses.
Source: xStation 5
