The NASDAQ 100 has reached a three-month high in October, defying recent US inflation data.

The index, which tracks the 100 largest tech stocks in the US, is being boosted by strong earnings forecasts for the Magnificent 7, with expected growth of 19% for the third quarter.

After a significant correction in July and August, where it dropped nearly 17%, the NASDAQ 100 has rebounded and established a higher low in September above the 200-day simple moving average.

This upward trend has been supported by increased buying activity in early October, with further gains now targeting the previous highs of 20,760 reached in July.