Tech Stocks Continue to Drive Market Higher


Joseph Rangel

Jan 23rd 2023  .  3 min read

Tech Stocks Continue to Drive Market Higher

The markets opened with a bang, but the story was far from the same for the Nasdaq and Dow Jones. While technology stocks sent the Nasdaq soaring to new heights, the Dow Jones took a nosedive. The first 15 minutes of trading left the S&P 500 stuck in neutral, caught in the middle of the opposing forces. Will the tech surge continue, or will the Dow make a comeback this week?

Tesla Amongst Strongest Names in The Market

The market was off to a rocky start, but tech giants soon took the reins. Netflix, Inc. (NFLX), Apple Inc. (AAPL), and Tesla Motor Company (TSLA) were among the notable stocks leading the charge. Each company saw gains of over 3%, with Tesla skyrocketing 8%. The tech sector’s explosive performance sent the market soaring, leaving investors wondering if this is just the beginning of a tech-fueled rally.

The Dow Jones finally caught up with the market’s upward trend, thanks to the support from heavyweights. This, coupled with the S&P 500 breaking above the 4,000 level, sent the market into overdrive. This level has been a thorn in the market’s side, but breaking it has unleashed a wave of buying pressure. With big money piling in, the market is on a roll and investors are eager to see where it will take them next

A Weak Stock to Keep Tabs on 

While most tech stocks are soaring, one giant remains grounded. Amazon’s stock is lagging behind, and if the market’s upward momentum slows, it could pull the Nasdaq down with it. The psychological level of 4,050 on the S&P 500 futures also proved to be a roadblock for the market. Despite a strong uptrend, resistance at this level halted progress for the rest of the trading session.

Despite a late-session dip, traders have noted a positive trend emerging. A downward trend line, starting from the market’s high in 2022, has been broken for the first time in over a year. This technical breakthrough, combined with the market closing above this pivotal line, has traders excited about the market’s prospects.

Dow Jones Continues To Struggle

The market is on the rise, but the Nasdaq and Dow Jones are telling a different story. The Nasdaq futures pushed over 2% today, while the Dow Jones struggled to achieve 0.70% at the close. The bank earnings have been a drag on the Dow Jones and with technology earnings imminent, it is important to consider their effect on the Nasdaq performance.

Economic Events and Earnings Tomorrow 

Tomorrow, the S&P U.S. manufacturing Purchasing Managers Index (PMI) will be released before the market opens at 9:45 a.m. Eastern time. Also, Johnson & Johnson will report their earnings before the market opens, which will impact the healthcare sector. After the market close, Microsoft Corp will report their earnings and continue the technology earnings season.

Tech Stocks Help Guide Market Higher

The Nasdaq and the S&P 500 were positive to close the session. The S&P 500 futures closed up 1.10%, gaining 44 points, while the Nasdaq futures closed up 2.05%, adding 240 points. The Dow Jones futures followed, closing up 0.70%, an increase of 230 points.