Support From SpaceX

The NASDAQ is on watch today as traders brace for a round of major tech names to report earnings with IBM, Tesla and Meta all on deck later. Yesterday, a blowout set of earnings from SpaceX helped stock prices stabilise following the rout we saw last week as AI funding fears rocked markets. Musk’s company reported its first quarterly profit since IPOing in June with Q3 revenues of $14.5 billion, well above the $13 billion the market was looking for, on EPS of $0.35 vs $0.13 expected. Looking at AI revenues in particular, that segment printed $7.56, outpacing revenues from Starlink for the first time. Alongside the earnings data, Musk hinted at expectations of $1 trillion in revenue by 2028 but was quick to downplay speculation over a possible SpaceX and Tesla combination which arose after he appointed special committees to explore that as an option.

Big Names on Watch

Looking ahead today, Meta, Tesla and IBM will be key to watch. On the back of solid earnings from Space X yesterday, tech stocks could find fresh upside through the back of the week if today’s earnings come in strong, particularly given the muted October Fed hiking expectations and weakness in USD. On the other hand, if we see any weakness in these big names, particularly anything linked to the AI segment, this could revive the downside we saw in markets last week, pushing tech stocks lower near-term.

Technical Views

NASDAQ

The sell off has seen price breaking down through the rising trend line from YTD lows though stalling just ahead of support at 28,860. While this level holds, focus is on a fresh upside push and a new challenger on the 31k highs. If we break lower, 27,298 will be the next downside marker to watch.