Nasdaq 100 Mixed as Nvidia Gains Ahead of Earnings, While Apple and Tesla Weigh on Sentiment

Nasdaq 100 Index (INDEXNASDAQ: NDX) returned losses in the last for successive sessions, but is set to resume trading on a high note due to reduced risk aversion. The tech-heavy index will likely experienced a higher level of volatility as AI industry bellwether Nvidia (NASDAQ: NVDA) prepares to release its quarterly earnings results. Futures traders had already indicated the underlying inclination to place aggressive bets in early hours of trading on Tuesday, with the Nasdaq Futures index up by 1.4% at the time of writing.

Being a market cap-weighted index makes Nasdaq 100 Index susceptible to substantial declines when its largest stocks lose traction. In this case, Apple (NASDAQ: AAPL) is under pressure from the prospect of 25% trade tariff barrier on iPhones recently threatened by US President Donald Trump.

Another “Magnificent Seven” stock, Tesla (NASDAQ: TSLA), whose weight accounts for 3.1% of the Nasdaq 100 Index, will also be under immense pressure after reporting another sharp decline in sales. The Elon Musk-led EV maker saw its sales in Europe drop by 49% in April, despite the broader EV industry experiencing a 27.8% growth in the same period. A fourth successive monthly decline in sales does not augur well for the company, especially considering its recent upgrade of the Model Y. Nonetheless, the broader market sentiment will likely carry the day and keep the Nasdaq 100 afloat in the near-term.

Nasdaq 100 Index Forecast

The momentum on Nasdaq 100 Index favours the upside to prevail above 21,860 points. With the buyers in control, the Index will likely meet initial resistance at 21,440. However, a stronger upward momentum will breach that level and potentially send the index to test 21,775 points.

Alternatively, breaking below 20,860 points will send the momentum towards the downside. That will likely see the first support established at 20,462. Breaking below that level will invalidate the upside narrative. In addition, the resulting momentum could send the Index lower and test 20,114 in extension.