Market Analysis: NVIDIA and OPEC+ Create A Risk-On Appetite

• OPEC+ members indicate that the group may choose to end voluntary cuts starting in September.
• All US and global indices begin Monday’s trading session higher after a weak end to May 2024. The bullish price gap suggests a potential “risk-on” market.
• NVIDIA unveils its next generation of accelerator chips, promising annual upgrades. NVIDIA stocks are already up 0.55% in pre-market trading.

The NASDAQ struggled within the previous week and at one point was down more than 3.00%. However, a large surge of buyers towards the end of Friday’s session saw a strong rebound and the index also trades higher during today’s Asian session. The NASDAQ is currently being influenced by 3 factors. However, investors will also give importance to the pricing of rate adjustments after the US employment data.

The first factor driving investors to increase tech-stock exposure is NVIDIA. The company’s CEO has reiterated that the technology and AI market will continue to grow and become more aggressive. Additionally, Mr. Huang announced that NVIDIA is releasing a new accelerator chip and promises more in the coming year.

A second positive factor for not only the NASDAQ but also global indices is that most analysts believe the European Central Bank will lower interest rates for the first time in the current cycle. If more global banks decide to ease their monetary policies, stocks will become more attractive—provided the move is not in response to potential economic contraction.

Lastly, investors are taking advantage of the lower entry point and feel more optimistic as oil prices decline. Lower oil prices are expected to reduce inflationary pressure.

If the NASDAQ price rises above $18,638.83, it will form a bullish breakout pattern, indicating upward movement. However, for a stronger and longer-term bullish trend, investors will look for the price to increase further.investors will be keen for the price to increase above the 75-Bar EMA and 100-Bar SMA. These two moving averages are currently priced at $18,658.28 and $18,733.30.