Wall Street tumbles on rate, recession worries, bleak chipmaker outlook, Nasdaq’s 2% drop
Wall Street’s major averages closed lower on Thursday with technology-heavy Nasdaq’s 2% drop leading losses as investors worried that data showing a resilient economy would lead the U.S. Federal Reserve to keep hiking interest rates for longer than feared.
Micron Technology Inc’s glum forecast added to the downbeat mood and caused the semiconductor index (.SOX) to sharply underperform the broader market for its biggest daily decline in over a month.
Losses in rate-sensitive growth stocks saw technology (. SPLRCT) and consumer discretionary (. SPLRCD) indexes the hardest hit among the S&P 500’s (.SPX) 11 industry sectors.
The final estimate of the third-quarter U.S. gross domestic product was for 3.2% annualized growth, above the previous estimate of 2.9%.
Meanwhile, the Labor Department said filings for state unemployment benefits rose to 216,000 last week but were below economist estimates for 222,000.
And a third report showed the Conference Board’s leading indicator, a gauge of future U.S. economic activity, fell for a ninth straight month in November.
“We’re moving past one of the big worries of 2022 which was the Federal Reserve response to high inflationary pressure to the worry about 2023, which is a recession unfolding in the United States and probably globally too,” said Matt Stucky, senior portfolio manager for equities at North-western Mutual Wealth Management Company.
NASDAQ 100 TECHNICAL ANALYSIS
Nasdaq 100 is currently trading in down channel.
Nasdaq 100 is currently trading below all SMA
RSI is in selling zone which suggests bearishness and Stochastic is suggesting down trend.
Nasdaq 100 immediate resistance is at 11077.21 & its immediate support level is 11009.53
HOW TO TRADE NASDAQ 100 INDEX IN THIS WEEK
Nasdaq 100 is trading in down channel; it will continue to trade downside, so remain bearish on it.