Nasdaq Composite Extends Record Run as Cloud Sector Gains Bolster Bullish Momentum

The tech-heavy index reached its 22nd record close of the year, fueled by a surge in cloud-related stocks and mounting investor expectations for a Federal Reserve rate cut ahead of a key inflation report.

NEW YORK – The Nasdaq Composite index continued its upward climb on Tuesday, adding 80 points to close at a new record of 21,880—its 22nd record close of the year.

The advance reflected broad strength in global equities as expectations for a Federal Reserve rate cut next week intensified following another round of disappointing U.S. labor market data. The weaker jobs backdrop reinforced investor conviction that the central bank will act sooner to support the economy, creating a favorable environment for growth stocks.

Nasdaq futures ticked up a modest 0.1% in early trading, signaling that the positive momentum remains intact. A significant portion of the initial optimism was fueled by Oracle (ORCL), whose stock price soared nearly 29% after it forecast strong revenue growth for its Oracle Cloud Infrastructure (OCI) business.

The announcement reflected surging demand for cost-effective cloud services and triggered a chain reaction across the technology sector. Nvidia (NVDA) gained 2%, Advanced Micro Devices (AMD) climbed 3.3%, and Broadcom (AVGO) rose 2.2% in pre-market trading, underscoring the role of sector-specific catalysts in driving the Nasdaq's broader rally.

Traders Await PPI Data to Confirm Inflation Trend

Near-term focus has now shifted to the U.S. Producer Price Index (PPI) data, scheduled for release later today. Consensus forecasts point to a 0.3% monthly increase, a notable slowdown from the previous reading of 0.9%. A weaker-than-expected figure would confirm the market's view that inflationary pressures are easing, strengthening the case for an interest rate cut and likely weakening the dollar. Such an outcome would provide further support for equities.

From a technical standpoint, the index is approaching the 22,000 level, a key psychological and chart-based milestone. To sustain the advance, buyers will need to decisively clear the 21,900 area, which represents the next resistance zone. On the downside, immediate support is found at 21,800, the previous August high that has now flipped to a floor.

Overall, the combination of a favorable macroeconomic backdrop, sector-specific catalysts, and technical confirmations keeps the Nasdaq's trajectory pointed higher. While volatility may emerge around the inflation release, the broader picture suggests investors are positioning for continued strength as the index nears the 22,000 barrier.