Nasdaq-100 Hits Record High, Meta's Rally Powers Tech Surge

The Nasdaq-100 surged to a fresh all-time high of 22,191.37 on Tuesday, as tech stocks continued their relentless climb. The Invesco QQQ Trust QQQ, the most popular ETF tracking the index, also notched a new 52-week high of $540, reflecting the broader tech momentum.

Meta's Unstoppable Streak

Meta Platforms Inc META has been on an absolute tear, closing higher for 20 consecutive trading sessions as of Friday. Although the stock was pulling back on Tuesday, down 3.8% at the time of publication.

Since Jan. 16, META stock has soared 16%, fueling the Nasdaq's ascent. Given Meta's decent weighting in the QQQ and other major ETFs, its rally has been a key force propelling both the tech-heavy Nasdaq and the broader market higher.

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AI, Earnings, Economic Resilience

The AI boom continues to be a dominant theme, with Nvidia Corp NVDA, Microsoft Corp MSFT, and Alphabet Inc GOOGL GOOG leading the charge.

Strong corporate earnings have also played a pivotal role, as companies across the tech sector smash analyst expectations.

Meanwhile, economic indicators such as consumer spending and GDP growth are providing a sturdy foundation for investor confidence.

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The Fed Factor

Investors are betting that the Federal Reserve has reached the peak of its rate hike cycle. Lower interest rates would provide further fuel for the Nasdaq-100's upward momentum, making growth stocks even more attractive.

Inflation shows signs of easing, fueling optimism that a more dovish Fed could support higher equity valuations.

Technical Breakout With More Upside?

According to Adam Turnquist, Chief Technical Strategist at LPL Financial, the Nasdaq-100 has decisively broken out of its December highs and could have more room to run.

"A minimum technical-based price objective sets up near 23,650," Turnquist notes.

Additionally, relative strength versus the S&P 500 is improving, pointing to continued Nasdaq leadership.

ETF Winners Riding The Surge

Tech-heavy ETFs are reaping the benefits of the rally. Invesco QQQM QQQM and the First Trust Nasdaq BuyWrite Income ETF FTQI have seen steady gains, while the broader SPDR S&P 500 ETF SPY has also climbed, albeit at a slower pace.

With tech stocks leading the charge and Meta's unrelenting rally keeping the momentum alive, the Nasdaq-100 looks poised for more record-breaking action.

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