Nasdaq, Dow and S&P 500 Fall as U.S. Rates Rise

NASDAQ 100 Technical Analysis

The Nasdaq 100 has fallen pretty significantly in pre-market trading as interest rates continue to spike in the United States. This is toxic for a lot of tech stocks, and therefore it’s not a huge surprise to see this. That being said, we’re still very much in the same consolidation area that we have been in for a while, so I must admit that I am a bit impressed by the attempt at resilience. Whether or not that holds remains to be seen, but it is certainly worth paying attention to in this environment.

The markets will remain very on edge, I suspect, with interest rates, the PPI numbers coming out during the day, CPI coming out tomorrow, and the war headlines.

Dow Jones 30 Technical Analysis

The early hours for the Dow Jones 30 have seen a turnaround, as we had initially tried to rally, only to give those gains up and go negative. We are sitting below the 50-day EMA currently and have broken out of that channel we had been in for so long over the last couple of days. The question now is, will the buyers return? Because, quite frankly, they’ve got a lot to worry about at the moment with interest rates, central bank issues, things like that. And, of course, the price of oil spiking above $100 during the day has done industrials no big favor.

S&P 500 Technical Analysis

The S&P 500 finds itself in pre-market trading, testing the crucial 7,600 level. This is an area that’s been important multiple times in the past, so I’m definitely watching it. I think this is a situation where, if we get some type of bounce, it might entice buyers. But with the CPI numbers coming out tomorrow, which will have a potential major influence on what happens with the Federal Reserve next week, I think we could get some volatility here.

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