Daily Price Outlook
The NASDAQ Composite Index is trading at $12,025 with a 0.46% loss in the last 24 hours. The Index continued its decline for the second day following the recent decision from the Federal Reserve. On May 3rd, the US Central Bank increased interest rates by 25 basis points, which intensified fears of a banking crisis. As a result, the NASDAQ Composite lost roughly 0.5%.
This recent rate hike marked the 10th consecutive increase, and it appears to be the last in the cycle. This is because Chairman Jerome Powell stated that future rate hike decisions would be made based on data. This softened language on future rate hikes was the main reason behind the stock market decline.
Today, the main focus is on the initial jobless claims from last week. Additionally, April's Non-Farm Payroll report is due on Friday, with expectations of 180K and an Unemployment Rate of 3.6%.
In the meantime, Advanced Micro Devices (AMD) stocks dropped by 9.3% after the company estimated quarterly sales below the forecasted value amid a weak computer market.
It further reported that revenues in Q1 2023 were down 9% from the previous quarter at $5.25 billion. The slump in the PC industry was the primary reason behind this AMD stock decline, which ultimately contributed to the downfall of the NASDAQ Composite Index.
Furthermore, Apple Inc. is expected to report its quarterly earnings today, and the company has already anticipated a 5% decline due to a massive drop in iPad and Mac sales. The tech sector earnings are about to , begin, and expectations of reduced revenues add additional pressure to the NASDAQ Composite.
Daily Technical Levels
Pivot Point: 12100
NASAQ – Technical Outlook
The prevailing trend for the NASDAQ index is bearish, with the $12,950 mark serving as a crucial level. The index may find immediate support around the $12,900 level, which is strengthened by a double bottom pattern. However, this level has already been broken.
On the upside, resistance is anticipated near the $12,998.2 level, and surpassing this level could potentially drive the NASDAQ price toward $13,101.8.
On the other hand, if the index falls below the $12,962.6 level, it could face further declines toward the $12,700 or $12,400 levels.
Key technical indicators, such as RSI and MACD, are currently entering the sell zone, intensifying the selling momentum. Therefore, keeping an eye on the $12,998.2 level is crucial, as it could initiate a prolonged period of selling for the NASDAQ index.
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