The Nasdaq 100 has had a spectacular run so far this year, rising more than 8% in the first three months alone. But with earnings season about to kick off, experts are predicting that now might be the time for a pullback before the index continues its climb.
Analysts at Bank of America are forecasting that the Nasdaq 100 could see a decline in the coming weeks, citing the expected halt in the market’s momentum due to disappointing earnings reports from tech giants like Apple, Microsoft, and Amazon.
The Nasdaq 100 has done incredibly well in spite of the coronavirus pandemic as investors search for a safe haven from the economic uncertainty. Many tech stocks, such as Apple, Microsoft, Amazon, and Alphabet, are trading at all-time highs thanks to strong consumer demand.
But investors should be aware that a pullback is still imminent. Earnings reports often act as an indicator of the health of a company’s stock and can significantly affect its performance.
Bank of America analysts are expecting the market to take a “wait-and-see” approach, as investors try to digest earnings reports before making any major investments.
Additionally, some analysts are warning that the market could be overextended. With valuations high across the board, investors should be cautious and diversify their portfolios to guard against sudden and unexpected swings in the markets.
Overall, the Nasdaq 100 pullback will gauge market sentiment as investors digest the latest earnings reports. It’s important for investors to remember that these pullbacks are natural, and they shouldn’t be viewed as a sign of impending doom. Instead, analysts suggest that investors use dip buying as a way to take advantage of the pullback and stock up on tech stocks before they keep rising.
“Warning: Nasdaq 100 Plunging – Time to Take Action!
