. Futures slump as recession fears loom - Capital Street Fx

Futures slump as recession fears loom

16 Jun 2022

NASDAQ 100 is trading up 2.49% at 11593.77

U.S. stock index futures fell sharply on Thursday, pointing to a reversal of the previous session’s rally, as fears of a recession grew after the Federal Reserve’s biggest rate hike in nearly three decades.

Rate-sensitive growth stocks took the biggest beating, with Nasdaq 100 futures slumping about 3%.

The Fed on Wednesday matched market expectations by hiking interest rates by 75 basis points. It also projected a slowing economy and rising unemployment in the coming months in the face of worst inflation in 40 years, raising risk of a downgrade to U.S. corporate profit in third and fourth quarter.

Post Fed meeting Wells Fargo (NYSE:WFC) said the odds of a recession now stand at more than 50%.

With inflation hitting double digits, central banks globally are adopting an aggressive stance to tame soaring prices.

The Swiss National Bank raised its policy interest rate for the first time in 15 years in a surprise move on Thursday, while the Bank of England looked set to raise borrowing costs later in the day.

On technical fronts NASDAQ 100 RSI stood at 18.87 and currently it is trading below all MA. So, SELL position can be taken with following target and stoploss:

TRADE SIGNAL – : NASDAQ 100 – SELL: 11302.34, TARGET: 11263 .16, STOP LOSS: 11342.04