– Nasdaq index is bearish, although ending the day with slight gains.
– The stronger US dollar has dominated the markets. As a result, stocks and oil tumbled on the day.
– Microsoft and Alphabet may bring Nasdaq out of the woods.
The S&P 500 is in correction territory, while the Nasdaq 100 is in a bear market. Wall Street is desperate for a reason to be bullish on the prospects and start investing in risky assets again due to rising yields and fears that the US economy is headed for a hard landing.
As Twitter’s stock price plummeted on reports, Musk would soon accept his takeover offer. Wall Street losses were a lot less severe than in Europe and Asia. The Nasdaq Composite index even rose briefly.
On Monday, the stock market tumbled, and oil prices fell amid concerns China’s lockdown measures could harm an international economic system grappling with years of excessive inflation.
These losses accompanied last week’s announcement by Federal Reserve Chair Jerome Powell that th-e top US financial institution will cut hobby fees by half a percentage point next month and, in many cases, by more this year.
As a result, the dollar has become a strong benchmark that is also a safe haven.
As long as Microsoft and Alphabet provide constructive, forward-looking comments, the relentless selling activity could ease and pave the way for the tech sector to stabilize. However, if these two powerful players disappoint and warn about the future as Netflix did, all bets are off.
Nasdaq price technical analysis:
The Nasdaq index price remains supported by the key psychological figure of 13000. The price level is also important, being a previous swing low and support. Although the index seems to be lagging below the key SMAs on the 4-hour chart, the index is attempting to recover. However, the recovery remains shallow as no clear price action depicts signs of reversals.
