Big Tech Earnings Could Reset Nasdaq Momentum

QQQ’s technical backdrop points to a market that is still healthy but losing momentum. The fund sits well above its 200-day moving average at 641.06, but its 41.4 RSI reading and negative MACD signal suggest short-term pressure is building after a strong run, while Apple and the broader semiconductor trade also showed signs of consolidation rather than fresh breakout buying.

For investors, the real focus is not just whether Microsoft, Apple and Nvidia beat earnings estimates, but whether they can justify the scale of capital spending tied to artificial intelligence. Adalytica’s earnings sentiment gauge for Nvidia sits at 100, labeled “Extreme Greed,” underscoring how much optimism is already embedded in the stock, while Microsoft’s sentiment reading has fallen to 18, or “Fear,” reflecting the market’s sensitivity to any sign that AI monetization may be slower than promised.

Apple’s shares closed at 325.89, near the top of their recent range after a powerful rally, but the stock’s high RSI reading of 76.2 suggests buyers are stretched heading into results. The market is likely to reward companies that show clear operating leverage from AI and cloud spending, and punish those that lean too heavily on capex without near-term payoff.

The next catalyst is earnings from the remaining Big Tech heavyweights, along with any guidance on AI infrastructure spending, margins and demand trends. If the companies deliver stronger-than-expected monetization, the Nasdaq-100 could resume its advance; if not, the market’s recent hesitation may turn into a broader reset.