NASDAQ tumbles as rate hike expectation rises.
“The financial market remains optimistic towards Fed in initiating more rate hikes ahead.”
US equities finished lower on Wednesday after key manufacturing data from US offered mixed results. According to ISM, Manufacturing PMI rose to 47.7 for the month of February, albeit lower than expected reading of 48.0. While the data came in less than expected, it provides expectation for further improvement in manufacturing sector, which would reflect towards progressive economic growth. This has led to an uptick in US Treasury yield and at the same time, spurring selloff on US equities. Moreover, two Fed officials has recently commented that more aggressive rate hikes are necessary to slow down inflation which is still hovering at high levels.
Technical Analysis
NASDAQ, Daily: Nasdaq tumbles further following prior closure below 11900. For the time being, buying pressure was prominent as it fails to close below the 200-MA line. Nonetheless, with MACD showing increasing bearish momentum suggests the index to extend its losses after closing below the 200-MA line.
Resistance level: 11900, 12275
Support level: 11325, 10675
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