Wolfe Research Forecasts Continued Gains for NASDAQ 100 Driven by Mega-Caps

Key Points:

• Meta and Nvidia are key drivers propelling the NASDAQ 100 higher.
• Wolfe Research expects the upward trend to persist unless U.S. economic growth expectations shift.
• Potential support levels identified at 17,450 and 17,100; resistance around 17,600.
• Short-term declines may offer buying opportunities, with smaller-cap stocks potentially catching up.

Wolfe Research projects that the NASDAQ 100 will continue its upward trajectory, buoyed by significant contributions from mega-cap companies such as Meta and Nvidia. The recent interview with Jerome Powell has further reduced the chances of a March rate cut to below 20%, as reported by the Financial Times, reinforcing the positive outlook for the index.

The research firm highlights potential support levels at 17,450 and 17,100, with the latter marking the base of last week’s notable wick. The 20-day moving average is situated just above this support level, which could offer buying opportunities during short-term declines.

Wolfe Research anticipates that the NASDAQ 100’s ascent will persist until there is a notable change in U.S. economic growth expectations. Additionally, smaller-cap stocks are expected to outperform as they catch up with their larger counterparts. Resistance is seen near 17,600, aligning closely with the index’s all-time highs.