NASDAQ 100 NEWS AND TECHNICAL ANALYSIS – 17 March 2023
17 Mar 2023
Due to investor worries about the banking industry, U.S. stocks decline.
U.S. stocks were sinking as investors continued to worry about the health of the banking sector.
The NASDAQ Composite was down 0.7%.
Stocks fell Friday as investors pulled back from positions in First Republic and other bank shares amid lingering concerns over the state of the U.S. banking sector.
Major U.S. bank stocks fell on Friday, less than a day after joining forces to funnel $30 billion worth of deposits into First Republic.
Bank of America, Wells Fargo, Citigroup, and JPMorgan Chase said Thursday they would contribute about $5 billion apiece to the First Republic as part of the rescue plan. Goldman Sachs and Morgan Stanley agreed to provide around $2.5 billion each.
Shares of Bank of America, JPMorgan Chase, Morgan Stanley, Citigroup, and Goldman Sachs were last down about 2% each. Wells Fargo dipped about 2.4%.
Trust Financial and State Street fell about 3% each before the bell, while PNC, Bank of New York Mellon, and U.S. Bancorp lost 2%. All five financial institutions said they would deposit about $1 billion each to the First Republic.
Meanwhile, U.S.-listed shares of Credit Suisse dropped nearly 8% as traders considered the emergency liquidity plan.
SVB Financial filed for bankruptcy protection early Friday after a run-on deposit at its Silicon Valley Bank forced regulators to shut it down. The move allows the parent company time to consider strategic alternatives for its broker-dealer and venture capital arms, which aren’t part of the filing.
It also comes a day after a group of big banks banded together to deposit $30 billion in uninsured funds at First Republic Bank (NYSE: FRC), which had gotten caught up in the sharp selloff of banking stocks since Silicon Valley Bank’s collapse last week.
First Republic suspended its dividend after the move. Its shares were down 23% on Friday.
The shakeout in the banking sector could give the Federal Reserve extra reason to be cautious about interest rates as it heads into next week’s policy meeting. Before SVB’s woes, expectations had grown high that the Fed would raise rates by half a percentage point, as Chair Jerome Powell told Congress the fight against inflation wasn’t over.
But with small and regional banks under pressure, lending could contract and slow the economy. That gives the Fed room to raise rates less aggressively. Most futures traders currently expect a quarter of a percentage point hike.
NASDAQ 100 TECHNICAL ANALYSIS DAILY CHART:
Nasdaq 100 is currently trading in the up channel.
Nasdaq 100 is currently trading above all SMA.
RSI is in buying zone which suggests bullishness and Stochastic suggests an up trend.
Immediate resistance is at 12802.77 & its immediate support level is 12555.27
HOW TO TRADE NASDAQ 100 IN THIS WEEK
Nasdaq 100 is trading in the up Channel; it is currently at resistance zone; if it rejects from the resistance zone it can fall further to the downside.