Nasdaq 100 is on track for its worst month this year (NVDA)
As things stand, the Nasdaq 100 is on track for its worst month since December. And unless it can rally 4.4% or more over the next three days, it will snap a 5-month bullish streak.
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As things stand, the Nasdaq 100 is on track for its worst month since December. And unless it can rally 4.4% or more over the next three days, it will snap a 5-month bullish streak.
It may have taken a few weeks, but markets are finally pricing in what we argued all along; a higher terminal rate and no cuts this year.
Last week the tech-heavy Nasdaq dived 5.77% after hotter-than-expected inflation data and a profit warning from FedEx that fuelled concerns over a recession. Despite the widespread carnage, Tesla remarkably finished last week 1.22% higher at $303.35.
Last week the Nasdaq closed -2.28% lower, snapping a four-week winning streak that helped the tech-heavy index extend its rebound ~25% from the June lows.
In all honesty, this week which includes an FOMC meeting, U.S Q2 GDP data, and a slew of earnings reports from U.S mega tech stocks, is not one we would look to add new positions to trading portfolios.
Last week, U.S stock markets rebounded from oversold levels supported by end of month, end of the quarter and end of financial year rebalancing flows and by softer economic data.
2022 has seen the worst start to the year for U.S equities since the 1970s, best exemplified by the tech-heavy Nasdaq which at its nadirs last week was over 30% below its bull market highs
A sea of red as the ASX20 finished down 155 points today at 7318, with all sectors losing ground on the day. One of the heaviest drags on the index was Woodside Petroleum (WPL) which closed 4.58% lower at $30.60.
Conflicting narratives surround the status of peace negotiations between Russia and Ukraine. However, there appears to be potential for a cease-fire agreement in the coming weeks that allows Putin to save face and retain Crimea and the two separatist states in return for peace and Ukraine agreeing not to join NATO.
After early weakness, U.S. equity futures turned higher during the Monday session in Asia on news that Presidents Biden and Putin have agreed “in principle” to a summit on the condition that Russia does not invade Ukraine.
The nervous start to 2022 continued last week as the rout in global stock markets deepened on concerns over rising inflation and interest rates and tension between Russia and Ukraine.
Over the past 18 months, the arrival of each significant wave of coronavirus has prompted traders to rotate into tech stocks at the expense of value stocks.
Concerns over a fourth wave of Covid-19 in Europe, bringing new lockdowns, saw traders revert last week to the now-familiar “lockdown playbook” of buying tech stocks at the expense of value stocks.
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