The Nasdaq 100 extended its bullish momentum following Nvidia's better-than-expected earnings report, with the technology-heavy index breaking through significant resistance levels. The semiconductor company's strong quarterly results reignited investor confidence in artificial intelligence infrastructure investments, providing support across the broader tech sector.
Despite the initial positive reaction, market participants remain cautious about the durability of current gains. Questions persist regarding the long-term trajectory of AI-related spending and intensifying competition within the sector. These concerns were underscored by Salesforce's latest guidance, which fell short of market expectations and raised broader doubts about traditional software companies' competitive positioning in an increasingly AI-centric environment.
Meanwhile, European equity markets capitalized on positive sentiment, with the FTSE 100 reaching record levels. Market participants are closely monitoring today's trading activity to determine whether the recent gains can sustain momentum or whether the initial enthusiasm may face headwinds from ongoing macro and sector-specific uncertainties.