In this Stockhead series, Josh Gilbert – market analyst at global investment platform eToro – gives investors the scoop on all things Nasdaq related; the key market themes, along with popular investment trends based on eToro’s data and insights.

That was a pretty wild week on Wall Street – a week that put down markers – as markets accelerated, then crashed – with investors digesting the latest disco moves from Jerome Powell and the FOMC.

The Nasdaq climbed as much as 3.4% after Jerome Powell announced a 50 basis point rate hike and that a 75 basis point rate hike would be off the cards.

A day later and that relief curdled into fear and loathing.

The Nasdaq slumped 5% for its worst session since September 2020, with investors reaching for the valium should the Federal Reserve fall behind the curve and inflation pressures persist, which could very well lead to ‘surprise’ hikes and some old school panic in the not too distant future.

Be that May, or be it July: we’re optimistic that we’ve reached ‘peak Fed’ on the interest rate fear thermometer. Inflation expectations are tentatively easing from the highs of 8.5% and, of course, well above the Fed’s target of 2%. Could this be total peak inflation?

Meh. Possibly, but we have been surprised so far, and it’s certain policymakers have too.


Cash rich, quality

Investors may look to add quality stocks to their portfolios. They’ll be looking for colossal balance sheets and high profitability – ultimately ‘cash rich’ businesses.

These companies will be able to navigate difficult periods in a volatile market and among other qualities will be nestled comfortably on top of the resilience shelf.



As you can imagine, there were not a whole lot of winners from such a week, and despite some strong earnings. However, the standout? AMD.

The chipmaker climbed 4.5% and was one of the standouts from a torrid week on the Nasdaq AMD reported first-quarter earnings that beat analyst estimates on earnings and revenue.

The results underlined AMD’s strong growth, with revenues increasing by 71% year on year.

The company also provided strong guidance for the second quarter, pointing to a number of positive trends. With growing consumer demand for consoles, AMD expects a record year in this sector. As a result, AMD anticipates sales of USD$6.5 billion in the second quarter, exceeding analyst expectations of USD$6.38 billion.



Another name that reported strong earnings was Airbnb, but it was unable to survive the sell-off, falling 6% for the week.

After a difficult few years, Airbnb has seen its nights and experiences sector return to pre-pandemic levels, growing by 25% from Q1 2019 to over $102 million. In addition, the company’s revenue increased by 70% year-on-year, with long-term stays (28 days or more) helping boost sales. The company also offered solid guidance heading into Q2, citing ‘substantial demand’ for travel.

Some of the biggest losers were cyber-security stocks, with Crowdstrike tumbling 11% and Cloudflare down 14%. Cloudflare reported earnings that beat expectations, but its guidance was weak, with the company expecting a loss next quarter, below analyst estimates.