Tech stocks and falling story!
Market analyst – IFC Markets
US 10 Year Treasury yields increased to its 3-months high above 1.546% following last week’s Federal Reserve meeting. This higher inflation is killing tech stocks. AAPL, AMD, NVDA, MSFT, TSLA, AMZN, and other tech stocks all falling sharply, which caused a more than 2.3% fall in NASDAQ, in its first trading hours. We could see the same story in Europe as well. The benchmark 10-year German bund climbing 3 basis points Tuesday. And these increasing Bond yields there also pushed the markets to low levels. German DAX is trading 1.9% lower at the time of writing.
The market is really unsettled by the pre-release of Federal Reserve Chairman Jerome Powell’s testimony to Congress. We are expecting him to acknowledge that inflation is much stronger than expected and is likely to remain “elevated” for at least some months, as current data show.
From the technical point of view, as we can see in the bellow chart, NASDAQ breached the strong support at 15,000 and now leading towards next support at 14,600. At the moment, breaching under next support is a bit far than expectations, however, we have to keep the eye on that. On the flip side, 50DMA at 15,180 is the strong resistance, and breathing above this level will open the doors for much higher levels and new records high. For now, RSI is at 34 still supporting the bears.
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