NASDAQ Price Analysis – May 04, 2023
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
Support Resistance
11995 12186
11909 12291
11804 12377
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.
Related:
* GOLD Price Analysis – May 04, 2023
NASDAQ Price Analysis – April 25, 2023
Daily Price Outlook
The Nasdaq 100 Index (NDX) has fallen by 0.24% to reach 12,969. The decline in the Nasdaq index can be attributed to pressure from significant mega-cap companies, with investors awaiting reports from companies such as Microsoft. Additionally, Tesla's shares fell due to concerns about its spending plans.
Tesla pushes Nasdaq lower
On Monday, Tesla (TSLA), the world's largest producer of electric vehicles, announced in a filing that it has increased its capital expenditure expectation from $6 billion to between $7 billion and $9 billion as it ramps up production at its factories.
The company has been aggressively increasing production to meet CEO Elon Musk's target of selling 20 million electric vehicles by 2030, putting sales growth ahead of profit in a sluggish economy.
As a result of the announcement, Tesla Inc. saw a 1.5% decline in its share value, and the Nasdaq Index also suffered losses due to the pressure on Tesla's shares.
Corporate Earnings Drive NASDAQ Lower
This week, which will mark the halfway point of earnings season, Wall Street is anticipating the results of the mega-cap technology companies. Alphabet, Microsoft, Amazon, and Meta are a few of the well-known companies expected to release their first-quarter results.
Microsoft (MSFT) shares, which have increased by more than 17% this year, were under pressure on Monday as investors were concerned about the company's upcoming earnings report on Tuesday. MSFT is down 1.40% at $282.
Additionally, despite an increase in Daily Active Users, Meta's Q1 profitability is expected to drop for the sixth straight quarter due to dull advertising income and increased expenditures. The Nasdaq 100 is moving down ahead of key results from Meta and other "Big Tech" behemoths.
Daily Technical Levels
Support Resistance
12924 13054
12847 13108
12793 13185
Pivot Point: 12977
NASDAQ – Technical Outlook
The current trend for the NASDAQ index is bearish, with the $12,950 mark as a key level. The index may find immediate support near the $12,900 level, which is reinforced by a double bottom pattern. However, this level has already been breached.
On the upside, resistance is expected around the $12,998.2 level, and breaking above this level could potentially push the NASDAQ price toward $13,101.8.
Conversely, if the index breaks below the $12,962.6 level, it could experience further declines toward the $12,700 or $12,400 levels.
Key technical indicators, such as RSI and MACD, are now entering the sell zone, reinforcing the selling momentum. Thus, monitoring the $12998.2 level is critical, as it could trigger an extended period of selling for the NASDAQ index.
Related:
* BTC/USD Price Analysis – April 25, 2023
NASDAQ Price Analysis – April 19, 2023
Daily Price Outlook
The Nasdaq 100 Index (NDX) experienced a 0.03% gain, trading at 13,091.79. As major companies prepare to announce their financial results for the first quarter, earnings season is set to kick off, and the Nasdaq has managed to preserve its bullish momentum throughout the month thus far.
The Nasdaq 100 Index now finds itself in the typical lull before the storm, as Q1 earnings reports begin in earnest this week. Furthermore, from an economic perspective, the US economy is performing quite well, exhibiting indications of decreasing inflation, consistently expanding at a solid pace, and sustaining historically strong job markets despite some recent signs of weakness.
Netflix's Q1 Earnings Surpassed Forecasts
Netflix Inc (NFLX) announced its revenue and profit for the first quarter on Tuesday, becoming the first mega-cap company to do so. The pioneer in streaming video services benefited from a crackdown on password sharing and the introduction of an ad-supported tier in Q1.
Netflix's earnings per share for the three months ending in March amounted to $2.88, slightly surpassing Wall Street's prediction of $2.86. Meanwhile, its revenue of $8.162 billion matched analyst expectations. Furthermore, NFLX's stock price increased by 0.29% to $333.70.
Tesla Earning to Move the Stock Index
Investors are closely watching Tesla's upcoming earnings report on Wednesday, as the company's financial results significantly influence its stock price.
Analysts expect Tesla to report a 24.2% year-over-year increase in first-quarter sales, amounting to $23.29 billion.
However, the average profit estimate has decreased by approximately 2.4% over the past three months. Tesla's share price (TSLA) has dropped 1.5% to around $184.31.
Furthermore, Tesla announced a reduction in pricing for its Model Y and Model 3 electric vehicles in the US, as seen on its website on Tuesday. This marks the sixth time the company has made such a move in the US this year, prompted by concerns about the impact on its profit margins.
NASDAQ Top Performing
On Tuesday, Nvidia (NVDA) stock experienced a surge, reaching its highest level in a year, following a recent uptrend prompted by HSBC's upgrade of the graphics chipmaker's rating to "buy" from "reduce." This change was driven by the company's potential in the artificial intelligence sector.
According to Refinitiv data, out of the 48 analysts covering Nvidia, only Frank Lee, Head of Technology Research at HSBC, holds a negative view of the chipmaker.
Nvidia's impressive 91% gain in 2023 makes it the top-performing stock on the NASDAQ. Additionally, the 2.5% increase in Nvidia stock contributed to the overall growth of the heavyweight technology sector.
Daily Technical Levels:
Support Resistance
1.0934 1.0997
1.0897 1.1021
1.0872 1.1059
Pivot Point: 1.0959
NASDAQ – Technical Outlook
The prominent stock market index, NASDAQ, currently exhibits a bearish inclination around the $13,040 mark. The NASDAQ index could find immediate support near the $12,500 level, which is reinforced by a double bottom pattern. A bullish engulfing candle closing above this specific level may indicate a potential bullish reversal.
On the upper side, immediate resistance exists around the $13,101.8 level, and a bullish break above this point could drive the NASDAQ price toward $13,250.
Conversely, a bearish breakout below the $12,962.6 level could potentially lead to a further decline toward $12,700 or $12,400 levels. Leading technical indicators, such as RSI and MACD, are now entering the sell zone, which bolsters the selling momentum.
Thus, it is crucial to monitor the $13,100 level, as this may trigger extended selling in NASDAQ.
Related:
* GOLD Price Analysis – April 19, 2023
NASDAQ Price Analysis – March 29, 2023
Daily Price Outlook
The tech-heavy NASDAQ 100 Index (NDX) fell 0.49% at 12,610.57. The NASDAQ is under significant pressure as Treasury rates continue to rise.
Treasury Rates Rise
According to a report released by the Conference Board on Tuesday, confidence in the US economy rose in March despite the unanticipated turmoil in the banking industry. The business group's Consumer Confidence Index increased to 104.2 in March from an earlier upwardly revised reading of 103.4.
The Federal Reserve is under increased pressure because of the surge to avoid price increases. Rising rates make future earnings less attractive, such as those promised by growing corporations. Therefore, traders revised their holdings in Treasuries and helped the front-end selloff as concerns about the possibility of growth in the financial upheaval eased.
The 2-year yield rose to 4.08%. The 10-year yield increased to 3.57%. The dollar strength gauge, the Dollar Index (DXY), increased to 102.57, up 0.14%.
As a result, the NASDAQ retreated as investors concentrated on increasing Treasury rates, which was negative for tech stocks sensitive to yield. On the economic front, traders are anticipating the release of the most recent pending home sales data on Wednesday.
Regulators Facing Questions
Meanwhile, concerns over the crisis have subsided among US regional banks due in part to authorities' attempts to ease the issues. Investors' concern that increased rates may cause the economy to enter a recession resurfaced.
However, after a contentious hearing on Tuesday before the Senate Banking Committee, bank stocks declined, exerting pressure on NASDAQ. The three leading regulators supported stricter regulations for banks with over $100 billion in assets.
Moreover, Michael Barr, the Vice Chair of Supervision at the Federal Reserve, will speak in front of the House Financial Services Committee in Washington on Wednesday morning. The hearing's topic will be how federal regulators have responded to previous bank collapses.
NASDAQ Intraday Technical Levels
Support Resistance
12601 12792
12530 12911
12411 12982
Pivot Point: 12720
NASDAQ – Technical Outlook
The leading stock market index, NASDAQ, is trading with a bullish bias around the 12,683 level. The NASDAQ index has gained immediate support at the 12,500 level, which has been extended by an upward trend line. Closing a bullish engulfing candle above this particular level supports the odds of a bullish reversal.
On the upside, the immediate resistance prevails around the 12,800 level, and a bullish break above this particular level can expose the NASDAQ price towards 12,950.
On the lower side, a bearish breakout of the 12,500 level has the potential to break lower towards 12,400 or 12,200 levels. Meanwhile, the leading technical indicators such as RSI and MACD are now entering the buy zone, supporting the bullish momentum.
Therefore, let's keep an eye on the 12,600 level, as this may support NASDAQ prices.
Related:
* EUR/USD Price Analysis – March 29, 2023
NASDAQ Price Analysis – March 28, 2023
Daily Price Outlook
The tech-heavy NASDAQ 100 ended the session 0.7% lower, halting a two-week advance. The two-year Treasury yield exceeded 4%. On Monday, the S&P 500 increased, with financial firms in the index climbing over 1%. Energy producers also experienced gains.
A measure of regional lenders rose about 2.5%, as First Citizens BancShares Inc. surged over 50% after agreeing to purchase SVB Financial Group's Silicon Valley Bank. First Republic Bank soared on a Bloomberg report that US authorities are considering expanding an emergency lending facility, giving the lender more time to strengthen its balance sheet.
The stock market rally attempt continues, but the indexes have been volatile, and the breadth has been narrow. The major indexes rose modestly for the week but were far off weekly highs. The Russell 2000 reached 2023 lows with bank stocks, but small caps and banks edged up for the week.
The rally attempt has relied heavily on big-cap Nasdaq stocks, such as Apple, Microsoft, Tesla, Regeneron Pharmaceuticals, MercadoLibre, and Palo Alto Networks.
REGN stock entered a buy zone late in the week due to positive drug trial news. Apple and Microsoft are just above buy points, while Palo Alto is just below an entry. MercadoLibre and Tesla stock are maintaining key support levels, not far from being actionable. All have strong relative strength lines.
However, just because individual stocks are potential buys doesn't mean investors should act on them. This market rally attempt still needs to confirm its uptrend.
First Citizens BancShares will acquire SVB Financial's Silicon Valley Bank. First Citizens, based in North Carolina, will assume all SVB deposits and purchase around $72 billion in assets at a discount of $16.5 billion, according to the FDIC. Some $90 billion in assets will remain under FDIC receivership, with an estimated cost to the deposit insurance fund of $20 billion.
FCNCA stock jumped over 35% early Monday.
The FDIC has been trying to sell Silicon Valley Bank for over two weeks. US regulators may expand an emergency lending facility for banks, aiming to help First Republic bolster its balance sheet, as reported by Bloomberg on Saturday. Authorities are considering various options and do not see First Republic as needing urgent new help.
FRC stock skyrocketed 25% in premarket trade. Several other hard-hit financials rose solidly, with modest gains for banks large and small, including Deutsche Bank.
Late Friday, the Fed reported that deposits at small domestically chartered banks fell by $120 billion in the week of March 15 but increased by $67 billion at large domestically chartered banks.
On Friday, numerous banks rebounded from 2023 lows after concerns expanded, at least temporarily, to Deutsche Bank. Even Wall Street giants like JPMorgan Chase and Morgan Stanley briefly undercut recent lows before closing better.
NASDAQ Price Chart - Source: Tradingview
NASDAQ Intraday Technical Levels
Support Resistance
12630 12808
12517 12874
12450 12986
Pivot Point: 12695
NASDAQ – Technical Outlook
The NASDAQ currently exhibits a slight bullish tendency but faces resistance at the $12,700 level. Meanwhile, support appears to be firm at around $12,450. If the NASDAQ falls below the next significant support level of $11,850, it could expose the index to the next support area at $11,600.
Both the MACD and RSI indicators suggest a bearish market sentiment, as they are in the selling zone. However, if the NASDAQ manages to surpass the $12,700 level, it may potentially target the $13,000 or $13,200 levels on the upside.
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* AUD/USD Price Analysis – March 28, 2023
NASDAQ Price Analysis – March 23, 2023
Daily Price Outlook
The NASDAQ 100 Index (NDX) experienced a 1.37% decline, trading at 12,567.15, following the Federal Reserve's 25 bps interest rate increase on Wednesday, with policymakers indicating that there would be only one more rate hike this year.
Fed Chairman Jerome Powell reiterated his commitment to combating inflation, stating that the FOMC is firmly committed to achieving its 2% inflation target. However, he noted that the ongoing banking crisis has put pressure on monetary policy, with tighter credit conditions expected to impact economic activity, hiring, and inflation.
The banking sector's stability is crucial to the Fed's rate forecast, and Powell stated that bank savings are protected by the Fed, FDIC, and Treasury. However, he noted that it is still too early to determine how monetary policy should respond to the current banking crisis.
Powell's comments had a significant impact on bank stocks, including First Republic Bancorp (FRC) and PacWest Bancorp (PACW), which experienced substantial losses on Wednesday, leading to a sell-off that impacted the NASDAQ Index.
Corporate Earnings and Active Stocks
KB Home (KBH) reported a net income of $125.5 million for the fiscal first quarter on Wednesday, resulting in a 2.7% increase in share value. The company also announced a $500 million repurchase program.
Steelcase's shares rose more than 6% following the announcement of better-than-expected sales and adjusted profits per share for the most recent quarter, along with a positive forecast for the current quarter.
In contrast, shares of Coinbase (COIN), a cryptocurrency services provider, fell almost 10% after receiving a Wells notice from the Securities and Exchange Commission regarding potential breaches of US securities law.
NASDAQ Price Chart - Source: Tradingview
NASDAQ Intraday Technical Levels
Support Resistance
12630 12808
12517 12874
12450 12986
Pivot Point: 12695
NASDAQ – Technical Outlook
The NASDAQ is currently showing a slight tendency towards bullishness, but it is facing resistance at the $12,700 level. On the other hand, the support level seems to be holding firm at around $12,450. The next major support level for the NASDAQ is at $11,850, and if it breaks below this level, it may expose the index to the next support area at $11,600.
Both the MACD and RSI indicators suggest a bearish sentiment in the market, as they are in the selling zone. Nevertheless, if the NASDAQ manages to surpass the $12,700 level, it may potentially aim for the $13,000 or $13,200 levels on the upside.
Related:
* BTC/USD Price Analysis – March 23, 2023
NASDAQ Price Analysis – March 21, 2023
Daily Price Outlook
The NASDAQ 100 Index is currently trading at 12,562.61, marking a 0.34% increase in the past 24 hours. Traders have gained confidence in the potential resolution of the banking industry crisis, resulting in higher stock prices.
Credit Suisse Takeover
Financial authorities formulated a strategy for UBS to acquire Credit Suisse, aiming to restore trust in the banking system. UBS agreed to acquire Credit Suisse for $3.23 billion, and reports suggest that Switzerland is ready to lend the troubled banks up to $280 billion.
On Sunday, the Federal Reserve, the BoE, and the ECB, along with other major central banks, announced coordinated measures to increase liquidity in their existing US dollar swap deals. The objective was to make obtaining US dollar liquidity easier during times of crisis.
As fears of a global financial catastrophe due to a bank failure subsided, stock prices rose, improving risk appetite following UBS's deal to acquire Credit Suisse. However, the recent rally caused traders to continue taking profits, causing the NASDAQ index to fluctuate between gains and losses.
Fed Considers Interest Rate Hike
With earnings periods between the two quarters, this week does not have much economic data to offer. The main event this week is the Federal Reserve's decision on Wednesday, and the recent financial sector turbulence has increased the odds for interest rate hikes.
Traders and analysts are divided on whether the Federal Reserve will increase its benchmark policy rate. As of Tuesday, CME Group's FedWatch tool indicated a 75.3% chance of a 25 bps hike, while 24.7% believe Chairman Jerome Powell will have to halt his aggressive tightening campaign due to the growing bank failure.
As investors anticipate the FOMC meeting, the US 10-Year Treasury Yield and the Dollar index have slightly increased, with US10YT at 3.496% and DXY trading at 103.39.
Increasing market interest rates burden public and private firms, making business more challenging. Thus, the NASDAQ Index may decline. However, if the Fed halts its aggressive stance, stocks may rise further.
NASDAQ Intraday Technical Levels
Support Resistance
12418 12647
12317 12775
12189 12876
Pivot Point: 12546
NASDAQ – Technical Outlook
The NASDAQ is currently trading with a slightly bullish bias, but it faces immediate resistance at the $12,700 level while the support level remains firm around $12,450. The next significant support for the NASDAQ is at $11,850, and a breach below this level may expose the index to the next support area of $11,600.
The MACD and RSI indicators are both in the selling zone, indicating a strong bearish sentiment in the market. However, if the NASDAQ manages to surpass the $12,700 level, it could potentially target the $13,000 or $13,200 levels on the upside.
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* BTC/USD Price Analysis – March 21, 2023
NASDAQ Price Analysis – March 17, 2023
Daily Price Outlook
The Nasdaq 100 Index is currently trading at 12,581.39, which is an increase of 2.69% in the last 24 hours. Stocks are rising as investors anticipate that the authorities will provide sufficient support to the banking system.
First Republic's Support Benefits Banks and Boosts NASDAQ
The market's sentiment has improved following Swiss authorities providing a lifeline to Credit Suisse, and leading American financial firms joining forces to save First Republic Bank, a regional depository institution that was at risk of failing due to the bankruptcy of Silicon Valley Bank and Signature Bank.
Investors were pleased to hear that JPMorgan, Citigroup, Bank of America, Wells Fargo, Morgan Stanley, and PNC reportedly deposited $30 billion with First Republic Bank as part of a US government-led initiative to support troubled financial firms amid growing systemic concerns.
Moreover, the US regional banks' dramatic situation changed rapidly after the European Central Bank raised interest rates by 50 basis points. As several of the country's leading lenders rallied to help First Republic Bank, the NASDAQ experienced a significant rebound.
The Fed's Interest Rate Decision Shrouded in Uncertainty
Reports have indicated that the number of people filing new claims for unemployment benefits in the US has declined more than expected, indicating a strong job market that may encourage the Fed to continue hiking rates.
However, on Wednesday, data showing a decline in producer inflation and weak retail sales numbers supported expectations of a modest rate increase by the Federal Reserve at its meeting.
The Fed will announce a new policy on March 22, and money markets are overwhelmingly pricing in a 25-basis-point rate rise.
Uncertainty surrounding the Fed's interest rate decision has caused the Dollar Index to hit a two-day low at 104.08, while the US 10-year Bond Yield dropped to 3.564%. The weak dollar has capped the rise of the NASDAQ.
Movers and Shakers of the NASDAQ 100 Market
Today, AMD, Marvell Technology, and Intel emerged as the top gainers on the NASDAQ as demand for semiconductor stocks remained strong. Traders are expecting that the increasing demand for AI will boost earnings for semiconductor makers. If the risk appetite remains high and the NASDAQ continues to rise, this trend is likely to continue.
NASDAQ Intraday Technical Levels
Support Resistance
12096 12338
11940 12425
11853 12581
Pivot Point: 12182
NASDAQ – Technical Outlook
The NASDAQ is currently experiencing a bullish trend as it has broken through the resistance area of $12,350 and is now heading toward the next resistance level of $12,750.
If the index manages to break above the immediate resistance level of $12,750, it could expose it to the next resistance area of $13,125.
Both the MACD and RSI indicators are in the buying zone, indicating a strong upward bias in the market. However, if the NASDAQ falls below the $12,400 level, it could potentially reach the $12,100 or $11,850 mark.
NASDAQ Price Analysis – March 10, 2023
Daily Price Outlook
The Nasdaq 100 (NDX) is trading at 11,995.88, experiencing a 1.80% decline in the last 24 hours. This drop comes after investors closely watched the weekly unemployment statistics before releasing crucial job reports, causing a decline in US stocks.
Fed rate hikes and Biden’s Buyback Tax Plan
The weekly report on Initial Jobless Claims revealed 211,000 individuals applied for jobless benefits in a week, higher than the expected average of 195,000. This indicates that rising interest rates are causing pressure on the employment market. As a result, traders are now pricing in a higher likelihood of a 50 bps lift-off at the upcoming FOMC meeting on March 21-22.
Ahead of the release of the much-awaited February jobs report (NFP report) from the United States, traders have migrated to the sidelines, causing the yield on the US 10-Year Treasury to drop to 3.847%. Meanwhile, the US Dollar Index (DXY) is now hovering around 105.20.
Furthermore, traders are concerned about President Biden's proposal to quadruple a 1% stock buyback tax and recession fears. Buybacks are a crucial tool for giving investors their money back. If this policy is adopted, it could act as a long-term adverse trigger for stocks.
NASDAQ 100 Top gainers and losers
The best-performing shares in the Nasdaq 100 index during Friday's opening trade were those of Intel Holdings, with a 1.77% increase. On the other hand, Walgreens Boots Alliance had the worst performance, down 3.45%.
Looking at the year-to-date results, Walgreens Boots Alliance is down approximately 24.56%. Two other stocks on the move are Warner Bros. Discovery, down 3.7%, and PayPal, up 0.12%.
NASDAQ Intraday Technical Levels
Support Resistance
12133 12267
12051 12319
11999 12401
Pivot Points:12185
NASDAQ – Technical Outlook
Technically, the NASDAQ is currently in a bearish trend, having broken through the support area of $12,100 and is now headed towards the next support level of $11,900.
Further down, the immediate support for NASDAQ is at $11,850, and a break below this level could expose the index to the next support area of $11,600.
The MACD and RSI indicators are both in the selling zone, indicating a strong bearish bias in the market. However, on the upside, if the NASDAQ manages to cross over the $12,100 level, it could potentially reach the $12,400 or $12,600 mark.
NASDAQ Price Analysis – March 03, 2023
Daily Price Outlook
The Nasdaq 100 (NDX) trades at $12,044.87, showing a 0.89% increase within the last 24 hours. US stocks recovered from their initial decline as Raphael Bostic, the president of the Atlanta Fed, expressed his support for the stock market gains.
Bostic's Hawkish Stance Sparks Recovery Rally in US Stocks
At the start of the day, the NASDAQ faced some pressure. Nevertheless, the market recovered, and stocks soared as traders tried to counter worries about increasing interest rates. Raphael Bostic, the president of the Atlanta Federal Reserve, stated on Thursday that he strongly supports additional 25 basis point rate hikes, which resulted in the market reversal.
He also mentioned that the central bank could halt the current tightening cycle by the middle of summer. This was enough to cause market participants to overlook the rising bond yields.
The yield on the US 10-Year Treasury rose to 1.58%. At the same time, the US Dollar Index (DXY) is trading around 91.85. Following Bostic's remarks, the market is now pricing a greater chance of a lower Fed Funds rate for June 2023.
Corporate Earnings Drive NASDAQ Rebound Amid Interest Rate Concerns
Corporate earnings for the day saw a surge in Salesforce and Okta stock prices due to solid results, while Silvergate Capital and Tesla shares took a hit. Salesforce's shares rose after exceeding Wall Street earnings forecasts and publishing a better-than-expected projection on Wednesday. Similarly, Okta's shares also increased after the company reported better-than-expected results for the latest quarter and a positive outlook for the upcoming one. However, the shares of Silvergate Capital and Tesla fell.
Meanwhile, Silvergate Capital's stock plummeted over 57% when the company missed the deadline for filing its 10-K annual report. As for Tesla, shares also fell by 5.8% after the company didn't provide any details about the highly anticipated next-generation vehicles on investor day. Tesla is a popular choice among retail investors.
NASDAQ Intraday Technical Levels
Support Resistance
11879 12026
11819 12114
11732 12173
Pivot Points:11966
NASDAQ – Technical Outlook
Technically, the NASDAQ is currently confined within a downward channel, with a narrow trading range of $11,800 to $12,050. Support for the NASDAQ is being observed at the $11,940 level, and a close below this level could lead to a potential drop to the next support level at around $11,440.
Moreover, in the 4-hour timeframe, the Nasdaq has broken through an upward channel, further intensifying the bearish sentiment in the market. On the upside, the NASDAQ may face immediate resistance at the $12,250 level.