The stock market has been resilient to potentially unfavorable news and macroeconomic data so far.
Despite hotter-than-expected inflation readings on Tuesday, the correction has been, till this point, very limited, as the bulls continue to dominate. Meanwhile, the market consensus for the first rate cut has shifted from March to June.
Technology giants, particularly Nvidia (NASDAQ:NVDA) and Meta Platforms (NASDAQ:META), continue to lead gains on the Nasdaq 100, unfazed by the recent events.
But as many draw parallels to the dot-com bubble burst in the early 2000s, the counter argument is that such comparisons aren't strongly reflected in the current data.
Let take a look at the drivers of this rally to see where we stand right now.
Nvidia has shown an impressive nearly 50% return in 2024, following a remarkable 150% return in 2023.
Given this performance, a potential correction seems natural, supported by InvestingPro's fair value, which suggests a 19% discount.
The upcoming key factor for the company's stock price will be its financial results, set to be published on February 21.
Source: InvestingPro
Since the beginning of the year, Meta stock has surged by 33.7%, positioning it just behind Nvidia.
The primary catalyst for this upward momentum was the release of quarterly financial results, which exceeded expectations to such an extent that the share price experienced an immediate gain of over 20%.
However, the same indicator that hinted at an 8% correction risk for Nvidia suggests a similar potential risk for Meta as well.
Source: InvestingPro
As we assess the Nasdaq, Nvidia, and other technology giants, a crucial question arises:
Are we on the brink of a repetition of the 2001 scenario, marked by the burst of
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