Nasdaq Composite: Always higher

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Stainless, the Nasdaq Composite, a flagship index of technological values of the American coast, managed to grab 0.25% additional to 20,730 points on Wednesday, in a market which currently digests customs uncertainties.

“The new deadline for the establishment of American reciprocal prices is set for August 1. Donald Trump brandishes this threat to increase pressure on trade partners in order to obtain an agreement in his favor. The European Union leaves the negotiations while saying that he is ready to retort if necessary. If the most probable seems to be a trade agreement in principle between the EU and the United States by August 1 The fateful date to finalize it, however, we cannot completely rule out the possibility of implementing higher prices.

For the moment, it is the doubts about the addition of inflation possibly generated by this trade war that pushes the Fed to maintain its unchanged rates, to the great despair of Trump. Alexandre Baradez (IG France) fell in the beige book of the Fed published last night, about D. Trump’s customs taxes, the following:

“Many companies have passed at least part of the cost increases on consumers through price increases or supplements, even if some have delayed price increase due to the growing sensitivity of customers to prices, which has led to compression of beneficiary margins.”

On the values side, the powerful NVIDIA locomotive (+0.39% Wednesday) continues its ascent. The company specializing in chips with very high computing power – a vital need for services using artificial intelligence – announced Tuesday July 15 Resume sales of a specific model of advanced chips for artificial intelligence for the Chinese market.

“NVIDIA’s takeover by the sale of H20 to China is obviously positive,” said Bloomberg Vey-Sern Ling, Director General of the Private Banking Union. “Not only for the company, but also for the semiconductor supply chain for AIas well as for Chinese technological platforms that develop AI capabilities. It is also a positive development for relations between the United States and China, “he added.

Dan Ives de Wedbush does not hide his enthusiasm either. “This is a brilliant victory for the AI sponsor, Jensen, and for Nvidia, who follows a key meeting between Jensen and President Trump last week at the White House,” said the analyst. “”It is also an important carrier wind for the technological sectorbecause the green light given to Nvidia will propel the estimates of Wall Street in the sector in the coming years, with the return of China to the fold in the equation, “added the market specialist.

Dan Ives also explains that the Trump administration considers Nvidia’s GPU chips as “one of the biggest tokens on the poker table with China”. “The fact of allowing the company to sell its chips in the country should facilitate trade negotiations between the two countries,” he abounds.

On the statistical front, all targets are exceeded on the triple publication of 2:30 p.m. (weekly registrations for unemployment benefits, retail sales and Philly Fed index). On the sacro-saints retail sales, they jumped 0.6% (0.5% excluding cars), against an expected quasi-stagnation.

Key graphics elements

Above the 20,000 symbolic points, the buyer camp keeps its hand, in volumes that do not run out of steam. The buyer consensus is undisputed. Since the Gap of April 23, the index has evolved above its mobile average at 20 days (in dark blue), a trend curve above which the opinion will remain positive.

FORECAST

In view of the key graphic factors that we have mentioned, our opinion is positive on the Nasdaq Composite index in the short term.

This bullish scenario is valid as long as the Nasdaq Composite index Cote above the support at 20180.00 points.

Daily data graphics