Employment Data Eases Concerns and Pushes NASDAQ Close to an All-Time High!

The NASDAQ has climbed 1.40% this week as market risk appetite improves and institutions position themselves for the upcoming earnings season. The NASDAQ has now formed a second higher high and a third higher low, prompting technical analysts to suggest a potential bullish trend. Economists also predict strong performance for the NASDAQ in the second half of the year.

Bulls entered the market quickly during yesterday’s trading session following positive employment data. Analysts had expected the JOLTS Job Openings to fall to its lowest level since the COVID lockdowns, but the data showed 180,000 more vacancies than anticipated. Investors reacted positively, interpreting the data as a sign that the employment sector is balanced—strong but not so strong as to significantly drive up salaries and inflation.

Federal Reserve Chairman Jerome Powell added to the positive sentiment by noting that recent data suggests a return to a disinflationary path, despite persistently high inflation reports earlier in 2024. However, economists warn that rising oil prices, which increased by 8.40% in June 2024, could make inflation stickier if prices hover around $85 per barrel.

Even with potential inflation concerns, investors are starting to focus on the upcoming earnings season, set to begin on Friday, July 12th, with momentum picking up on the 17th. On Tuesday, 75% of NASDAQ stocks and 83% of its most influential stocks rose in value.

Currently, the NASDAQ is showing buy signals, trading comfortably above the 75-bar EMA and the Volume Weighted Average Price. Oscillators also indicate buyer control, though technical analysts are closely monitoring for sustained momentum. Key breakout levels are at $20,036.03 and $20,045.64, with the NASDAQ’s all-time high at $20,128.31.