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Lower US Treasury yields have helped the Nasdaq strengthen lately. In light of the Fed minutes suggesting a softer pace of rate hikes, investors are seeing renewed risk appetite. Nonetheless, inflation data such as next week's favorite inflation gauge the PCE, released on the 1st of December, will be key to confirming the slowing pace of inflation and the trajectory of the Fed cooling down its monetary tightening measures.

The Nasdaq 100 or ETF that tracks it, the QQQ, is showing encouraging price action looking at the indice from a technical analysis perspective. Traders will monitor the FOMC statement this afternoon, which could add volatility, but it will really all be about next week's PCE which could determine whether markets take a leg higher or break down lower. 

The indice for US tech giants, the Nasdaq 100 is holding its positive momentum as it remains above its resistance of around 11'700. A break below could signal a larger move lower. In the meantime, earnings are resilient and Treasury yields are steady, an encouraging sign. 

The Nasdaq 100 is gaining almost 1% in pre-market, on continued positive momentum following its surge of more than 7% on Thursday. Investors are rapidly re-pricing lower tightening expectations of the Federal Reserve. The dollar weakness and lower Treasury yields are particularly boosting the valuations of those demanding high PE ratios stocks such as semiconductors (SMH ETF, up 10% on Thursday), and areas such as e-commerce with Amazon up 12%. Investors will likely continue to digest the new reality of US CPI falling to 0.3% month-over-month, versus 0.5% expected, and 0.6% from the month prior (a 50% drop in the inflation rate). On Friday afternoon we will be watching the Michigan sentiment index for signs of the state of economic momentum. 

Earnings will be in focus this week with an emphasis on Big Tech. Investors look for clues about the strength of the consumer and are particularly focused on earnings growth revisions. Big tech earnings will begin Tuesday after the close with Microsoft and Alphabet.