Markets had four key new economic releases to analyse and digest on Wednesday. For Gold and the US Dollar, the news was neither completely positive nor negative. However, the data was ideal to spur a bullish trend in the stock market.

This morning the NASDAQ trades at a new all-time high after rising 1.22% in the Asian session and 0.23% the day before. Currently, US and Asian indices are all trading higher, while European indices continue to struggle. The best performing indices so far are the NIKKEI 225 and the NASDAQ 100.

The following economic releases were the main price drivers for the latest volatility:

• Core PCE Price Index: 0.2% VS 0.3% (lower than previous expectations)
• ADP Non-Farm Employment Change: 90,000 VS 73,000 (higher than previous expectations)
• Final US Quarterly GDP: 2.2% VS 1.5% (higher than previous expectations)
• US Personal Monthly Spending: 0.9% VS 0.8% (higher than previous expectations)

NASDAQ (USA100) - Economic Resilience and Lower Inflation Impels Ideal Conditions For Stocks

The NASDAQ had been trading sideways in range bound conditions for a good part of the past five days. However, the latest economic releases were quick to spur a new bullish impulse wave. The NASDAQ is now trading more than 18% higher in 2026 and looks on track to complete a fourth bullish year.

The Core PCE Price Index, the Federal Reserve’s preferred inflation reading, rose 3% year-on-year, coming in below 3.2% which markets were expecting. The lower inflation reading does not completely erase the possibility of an interest rate adjustment on October 28th. However, there now is a possibility of a pause until the central bank gathers further data.

There is a 35% possibility of an interest rate hike in October according to the CME Group. This is significantly lower than 70% which was being advised a few days ago. However, many economists continue to advise that if tomorrow's NFP data continues to read positive, the Fed will hike.

According to analysts with a hawkish view, the strong economic performance allows the Fed to tackle inflation, and even with a slightly softer PCE reading, the figure remains firmly above 2% with no real evidence to suggest 2% is achievable in the foreseeable future.

Nonetheless, the softer inflation reading along with strong employment indicates less certain hikes, along with a strong economy and consumer demand. This provides ideal conditions for the stock market, particularly before the upcoming earnings season, which is two weeks away.

Alphabet and Micron Stocks Boost NASDAQ’s Bullish Trend

In terms of components, the top six companies are the main price drivers behind the latest price movement. These include NVIDIA, Microsoft, Apple, Alphabet, Amazon and SpaceX. All of the six most influential companies for the NASDAQ rose in value. Alphabet stocks are particularly providing support after rising more than 1% on Wednesday and a further 1.70% in after hours trading.

Another key stock which is experiencing strong volatility, particularly during earnings seasons, is Micron Technology. Micron Technology issued a stronger-than-expected outlook for the current quarter, supported by booming AI-related demand. However, the company warned that higher employee compensation costs could put pressure on profit margins. The company expects fiscal first-quarter revenue of around $61.5 billion, with adjusted earnings of approximately $38.15 per share.

NASDAQ (USA100) - Technical Analysis

In terms of technical analysis, the NASDAQ is seeing strong bullish signals from both indicators and technical analysis. The price is trading above the day’s VWAP and all key moving averages. Bollinger bands are widening and the price is trading at the upper band indicating strong bullish momentum.

However, the price is overbought on the RSI on all timeframes below the 1-hour chart and is witnessing divergence on the 4-hour chart. This indicates the possibility of the trend losing momentum and either retracing or moving sideways. The price movement in October will largely depend on oil prices, the Fed’s rate decision and earnings reports. The ideal scenario for the NASDAQ would be for Oil to continue falling below $85 per barrel, for the Fed to pause and for earnings to remain strong.

On the 5-minute timeframe, the bullish signals remain strong and intact for now. Bearish signals are not likely to arise on indicators unless the price falls below $30,658.50. Above this level will see bullish indications remain.

Key Takeaways:

• The NASDAQ reached a new all-time high after the latest string of economic releases.
• Softer PCE inflation reduced expectations for an immediate Federal Reserve rate hike supporting stocks.
• Strong GDP growth and consumer spending reinforced confidence in the US economy’s resilience ahead of the upcoming earnings season.
• Mega-cap technology and AI-related stocks remained key drivers of the market’s advance. Of particular interest was Alphabet and Micron Technology stocks.