NASDAQ 100 hits a one-week high as AI stocks recover

Gains across NASDAQ, SPX and DJIA take NASDAQ to its highest level since 4 November.
AI sentiment strengthens as Nvidia recovers 2.9% and Anthropic lines up an IPO worth up to $1.4 trillion.
Thursday brings speeches from six Fed officials, ahead of Friday's October producer price data.

The recovery in US indices has been strongest where artificial intelligence (AI) exposure is greatest, with those benchmarks recouping more of the decline that started on 5 November. After touching just below 28,600, above its opening level for that session, the NASDAQ 100 is trading around 28,400. The S&P 500 has regained roughly four fifths of its losses and stands just above 7,600, while the Dow Jones Industrial Average has recovered around three fifths and 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 sent CoreWeave (CRWV) nearly 25% higher. Speaking to CNBC, CoreWeave Chief Executive Intrator said the company's data centre construction plans face no delays, addressing the concern that triggered the 5 November sell-off. Further demand for AI shares, which carry the largest weights 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 oversubscribed several times over.

Despite losing nearly 10% across Monday and Tuesday, Nvidia (NVDA) has rebounded 2.9%. The advance came even as Morgan Stanley removed its top-pick designation on Wednesday and the House China panel set an end-of-business-day deadline for Nvidia Chief Executive Huang to respond. Traders continue to assign a probability of close to 90% to a quarter-point Fed rate hike in December. With the Treasury market closed for Veterans Day, however, rising yields did not counter the equity rally.

Could the upcoming data and Fed speeches shift rate expectations?

With a quarter-point move on 9 December priced as almost certain, Thursday's speeches from six Fed officials will help inform expectations of whether the increase could instead be a half-point. The schedule runs from Cleveland Fed President Hammack at 14:00 GMT to New York Fed President Williams at 23:30 GMT. Hammack voted for a rate increase in October.

Thursday's initial jobless claims release is scheduled for 13:30 GMT, with the forecast at 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%, and annual growth of 6.6%, compared with 6.3% previously.

How much ground have the indices recovered?

From its 6 October peak near 31,350 to its 5 November trough near 26,600, the NASDAQ 100 has now retraced more than a third of the decline. The S&P 500 has recouped over half of its slide from just under 7,850. Unlike those indices, the Dow Jones Industrial Average advanced during October, rising from around 50,500 on 1 October to just below 53,800 on 5 November. It now stands about 1,300 points below that peak.

Nasdaq 100 index: daily chart

Nasdaq: Frequently Asked Questions

How did the Nasdaq develop into a stock exchange?

Based in the US, the Nasdaq stock exchange began as an electronic system for displaying share quotations. Its original role was limited to providing prices for over-the-counter (OTC) stocks; it subsequently became an exchange as well. By 1991, it accounted for 46% of the overall US securities market. In 1998, the Nasdaq became the first US stock exchange to offer online trading. It also compiles several indices, including the Nasdaq 100 and its broadest benchmark, the Nasdaq Composite, which covers all 2,500-plus stocks listed on the Nasdaq.

Which companies make up the Nasdaq 100?

Comprising 100 non-financial companies listed on the Nasdaq stock exchange, the Nasdaq 100 is a large-cap index. These constituents represent only a small portion of the thousands of Nasdaq stocks, yet account for over 90% of the movement. Each company's weight in the index depends on its market capitalisation. Technology-focused businesses feature prominently, alongside companies from other sectors and those based outside the US. Since 1986, the Nasdaq 100 has delivered an average annual return of 17.23%.

What are the ways to trade the Nasdaq 100?

Traders can access the Nasdaq 100 through several instruments. Contracts for Difference (CFD), offered by most retail brokers and spread betting platforms, allow bets on its movements. For investors with a longer-term horizon, Exchange-Traded Funds (ETFs) offer share-like trading while tracking the index, without requiring the purchase of all 100 constituent companies. The Invesco QQQ Trust (QQQ) is one such ETF. Traders can also use Nasdaq 100 futures contracts to speculate on the index's future direction. Options, meanwhile, confer the right, without any obligation, to buy or sell the Nasdaq 100 at a specified future price, known as the strike price.

Which Factors Influence the Nasdaq 100?

The combined performance of its constituent companies, as reported in quarterly and annual earnings, is the main driver of the Nasdaq 100, although several other factors matter. Economic releases from the US and elsewhere influence investor sentiment; a positive mood supports gains. Interest rates determined by the Federal Reserve (Fed) also affect the index by changing borrowing costs, as many companies depend heavily on credit. Inflation can therefore be another significant driver, alongside other indicators that shape the Fed's decisions.