Investor optimism surrounding upcoming earnings reports from megacap tech companies has fueled a rebound in the Nasdaq 100 Index. This positive sentiment comes despite earlier concerns about the impact of a new AI model from Chinese startup DeepSeek, which had put pressure on tech valuations. As the earnings season unfolds, market participants are eager to see results that could validate the high valuations in the tech sector. Additionally, the Federal Reserve's forthcoming signals on inflation are being closely monitored, as they could influence expectations for future interest rate changes. The strengthening US dollar, as indicated by the rising Bloomberg Dollar Spot Index, is also a factor, potentially affecting the global competitiveness of US tech stocks.
The Invesco QQQ Trust (QQQ) saw a rise of 1.42% to $521.53 as of 16:20 on Tuesday, January 28.