NASDAQ 100 climbs to a one-week high as AI stocks recover

NASDAQ reaches its highest level since 4 November as SPX and DJIA advance.
A 2.9% recovery lifts Nvidia as Anthropic lines up an IPO valued at up to $1.4 trillion.
Thursday brings speeches from six Fed officials ahead of Friday's October producer price figures.

Having reached just below 28,600, above its opening level on 5 November, the NASDAQ 100 is now trading around 28,400. Across US indices, greater exposure to artificial intelligence (AI) has meant a larger recovery of the losses that began that day. At slightly above 7,600, the S&P 500 has recouped roughly four fifths of that decline, compared with around three fifths for the Dow Jones Industrial Average, which is near 52,500.

TMGM Analysis: Financial Market News, Economic Calendar & Market Insights

A third-quarter revenue beat and higher 2026 revenue and operating income guidance have lifted CoreWeave (CRWV) by nearly 25%. Speaking to CNBC, CoreWeave Chief Executive Intrator said its data centre construction plans were not facing delays, addressing the concern that triggered the selling on 5 November. Further demand for the AI shares with the largest weightings in the NASDAQ 100 comes from Anthropic's initial public offering (IPO). The offering could value the company at up to $1.4 trillion and is reportedly several times oversubscribed.

Following a decline of nearly 10% across Monday and Tuesday, Nvidia (NVDA) has gained 2.9%. The shares advanced despite Morgan Stanley removing Nvidia from its top picks on Wednesday and the House China panel setting Chief Executive Huang a deadline of the end of the business day to respond. A quarter-point Fed rate rise in December is still assigned a probability of close to 90% by traders. With the Treasury market closed for Veterans Day, however, there was no rise in yields to counter the equity rally.

Fed speeches and inflation data take focus

Thursday's six Fed speakers begin with Cleveland Fed President Hammack at 14:00 GMT and end with New York Fed President Williams at 23:30 GMT. A vote for higher rates in October came from Hammack. With markets treating a quarter-point increase on 9 December as almost certain, the speeches will help shape expectations of whether the rise could instead be a half-point.

Thursday's initial jobless claims release is scheduled for 13:30 GMT, with a forecast of 195K against the previous 189K. At 13:30 GMT on Friday, October's Producer Price Index (PPI) is expected to show a monthly increase of 0.4%, following 1.3%. The annual rise is forecast at 6.6%, compared with 6.3% previously.

NASDAQ 100 and S&P 500 regain ground as Dow holds below its high

More than a third of the NASDAQ 100's decline between its 6 October high near 31,350 and its 5 November low around 26,600 has now been recouped. For the S&P 500, the recovery amounts to more than half of the fall from just under 7,850. By contrast, the Dow Jones Industrial Average rose rather than fell in October, moving from around 50,500 on 1 October to slightly below 53,800 on 5 November. It now stands about 1,300 points below that peak.

Nasdaq 100 index on the daily chart

Nasdaq explained

The Nasdaq's origins and role

Based in the US, the Nasdaq began as an electronic system for quoting share prices before developing into a stock exchange. Its initial role was limited to providing quotations for over-the-counter (OTC) shares. By 1991, it accounted for 46% of the US securities market as a whole, and in 1998 it became the country's first stock exchange to offer online trading. Several indices are also compiled by the Nasdaq, including the Nasdaq 100 and its broadest measure, the Nasdaq Composite, which covers all 2,500-plus shares listed on the exchange.

The Nasdaq 100's composition and returns

Comprising 100 non-financial businesses listed on the Nasdaq stock exchange, the Nasdaq 100 is a large-cap index. These companies represent only a small proportion of the thousands of Nasdaq-listed shares, yet account for more than 90% of its movement. Each constituent's influence is weighted by market capitalisation. Technology-focused businesses feature prominently, alongside companies in other sectors and those based outside the US. Since 1986, the Nasdaq 100's average annual return has been 17.23%.

Ways to trade the Nasdaq 100

Traders can access the Nasdaq 100 through several instruments. Contracts for Difference (CFD) are available through most retail brokers and spread betting platforms. Investors with a longer-term horizon can use Exchange-Traded Funds (ETFs), which trade like shares and track the index's movements without requiring the purchase of shares in all 100 constituent companies. The Invesco QQQ Trust (QQQ) is one such ETF. Futures contracts on the Nasdaq 100 offer a means of speculating on its future direction. Options, meanwhile, give holders the right, without an obligation, to buy or sell the Nasdaq 100 at a specified future price, known as the strike price.

Company Earnings and Economic Conditions Drive the Nasdaq 100

The combined performance of the Nasdaq 100's constituent businesses, as reported in quarterly and annual earnings, is its principal driver, although many other influences play a part. Macroeconomic releases from the US and elsewhere affect investor sentiment, with positive sentiment supporting gains. Interest rates determined by the Federal Reserve (Fed) also shape the index's performance by changing borrowing costs, on which many businesses are heavily dependent. Inflation can therefore exert a significant influence too, alongside other indicators that inform the Fed's decisions.

NASDAQ 100 climbs to a one-week high as AI stocks recover

Fed speeches and inflation data take focus

NASDAQ 100 and S&P 500 regain ground as Dow holds below its high

Nasdaq 100 index on the daily chart