The tech-heavy Nasdaq 100 slumped earlier this week amid fears that a liquidity crisis at Chinese real-estate developer Evergrande could lead to global financial contagion. However, investors’ shifting interest toward tech stocks helped the index recover quickly. Furthermore, the Chinese government’s intervention to support Evergrande could spur a rally in the market. Given this backdrop, we think prominent Nasdaq 100 stocks Applied Materials (NASDAQ:AMAT), Zebra Technologies (ZBRA), and Gartner (NYSE:IT) could generate exceptional returns in the near term. Read on.September has been a bumpy ride for the stock market, with the major indices ending last week with marginal losses. The tech-heavy Nasdaq 100 witnessed its worst day since May this Monday as investors exhibited concern about the Federal Reserve’s meeting this week, surging COVID-19 cases, and possible financial market contagion from China’s big property developer Evergrande’s liquidity crisis. However, the tech-heavy index roared back in Tuesday’s session as investors shifted their attention to tech stocks.
Although the anxiety surrounding the Evergrande Group’s potential default on interest payments has kept the market on edge, economist Ed Yardeni of Yardeni Research believes that the Chinese government would not let the real estate firm fail. And its intervention could drive relief rallies in the major indices.
Given this backdrop, investors remain bullish about prominent Nasdaq 100 stocks’ strong momentum lately. Applied Materials, Inc. (AMAT), Zebra Technologies Corporation (ZBRA), and Gartner, Inc. (IT) possess solid growth potential and we think are well-positioned to keep soaring.