NASDAQ 100: NEWS & TECHNICAL Analysis
U.S. Stocks Tumble After Higher-Than-Expected August Inflation; Nasdaq Down 4%
U.S. stocks sold off sharply after August’s inflation report came in higher than expected.
At 12:33 ET (16:33 GMT), the Dow Jones Industrial Average was down 926 points, or 2.9%, while the S&P 500 was down 3.2% and the NASDAQ Composite was down 4%.
The consumer price index for August showed inflation rose 0.1% from July despite the drop in the price of gasoline. From last year, inflation was up 8.3%, while analysts had expected an 8.1% print.
The selloff hit tech stocks particularly hard, with Apple Inc (NASDAQ:AAPL) and Microsoft Corp (NASDAQ:MSFT) down more than 4% each, while shares of Meta Platforms Inc (NASDAQ:META) dropped more than 7%.
Money markets forecast an 81% chance of a 75-basis-point increase in interest rates when the Federal Reserve meets next week, and a nearly 20% chance of a full 100 basis point hike.
Tuesday’s decline comes after stocks had rallied as investors took advantage of August’s market declines.
This is the last inflation report before the Fed’s policy meeting next week. Investors had hoped the Fed would have some reason to raise rates less dramatically. But the Fed is determined to quash inflation despite the risk of pushing the economy into a recession. And Tuesday’s report dampens hopes that inflation has already peaked.
NASDAQ 100 Technical Analysis: Daily Chart
In the daily charts, NASDAQ 100 is trading in an down channel. NASDAQ 100 is currently trading below all SMA.
RSI is in selling zone which indicates bearishness. MACD is currently below zero which indicates bearishness.
Its immediate support is 11922.75 & the resistance level is at 12237.90.
NASDAQ 100 INDEX will trade in down channel until there is trend reversal.
How to Trade NASDAQ 100 INDEX this Week:
NASDAQ 100 INDEX will follow the downtrend until their trend reversal. So, remain bearish on NASDAQ 100 INDEX.