FXTM information and reviews
FXTM
93%
IronFX information and reviews
IronFX
92%
Libertex information and reviews
Libertex
91%
FXCC information and reviews
FXCC
90%
Markets.com information and reviews
Markets.com
89%
FxPro information and reviews
FxPro
88%
EUR/USD
1.1730
BTC/USD
47 499.18
GBP/USD
1.3751
USD/JPY
109.9450
USD/CHF
0.9316
USD/CAD
1.2765
EUR/JPY
128.9676

Nasdaq eyes Treasury yields, testimonies of Big Tech CEOs this week


23 March 2021

The Nasdaq 100 minis are straining towards their 50-day simple moving average (SMA), with the benchmark index proper having gained 1.71% on Monday. It was a healthy start to the week for tech stocks, with 90 of the Nasdaq 100 constituents advancing for the day, including the likes of:

Such gains helped to restore the tech-heavy index’s year-to-date performance into positive territory, now up 1.54% for the period. Up until last week, the Nasdaq 100 had found its advances gathered so far in 2021 to be fleeting, as it fluctuated between gains and losses for its year-to-date performance.

What caused the Nasdaq to fall?

Surging Treasury yields have been the culprit for causing tech stocks’ declines since mid-February. The Nasdaq 100’s highest ever closing price was recorded on 12 February, which coincided with 10-year Treasury yields breaching the psychologically-important 1.20% mark. Since then, 10-year yields have climbed by as much as 55 basis points higher, while the Nasdaq 100 remains 5.22% below its record high.

The rosier US economic outlook has prompted market participants to:

(Note: The S&P 500, the Dow Jones index, and the Russell 2000 index all posted record highs last week)

Considering that the role that soaring Treasury yields has played in being the arch-nemesis to tech stocks, it’s important to note that there are several key auctions of Treasury notes this week amounting to over US$200 billion.

Lackluster demand for these Treasury notes may trigger another yields spike, potentially causing further volatility on the Nasdaq 100 and dragging the index back towards its 100-day simple moving, or perhaps even lower, depending on how much higher yields climb.

Tumultuous Thursday for Tech?

This week is also set to feature a high-profile grilling of the tech titans. The CEOs of Facebook (Mark Zuckerberg), Google (Sundar Pichai), and Twitter (Jack Dorsey) are set to testify before lawmakers in Washington who are accusing these social media platforms of not doing enough to battle misinformation.

These three social media companies make up 75% of the equally-weighted FXTM Social Media index, with the fourth constituent being Snapchat.

Since posting a record high on 17 February, the Social index has been trading sideways, looking for a fresh catalyst. Since that record high, Facebook has been the sole gainer for the period, which is helping prop up the broader index against the declines in the other three constituents:

Although Big Tech hasn’t been a stranger to the ire of US lawmakers, a fresh bout of uncertainty stemming from this hearing before the House subcommittee may further dampen these stock prices. Beyond Thursday’s hearing, news that US President is set to nominate Lina Khan to the Federal Trade Commission may weigh on tech stocks over the longer term. Khan has long warned against the dominance of tech giants and is a known proponent of breaking up Big Tech. Such an appointment indicates that the Biden administration’s antitrust agenda is likely to present a major headwind for these tech counters over the coming years.

#source

Related

Dollar jumps, gold slumps, stocks nervous
Dollar jumps, gold slumps, stocks nervous

Worries that the US consumer is rolling over were dealt a major blow yesterday after the nation’s retail sales for August overpowered some gloomy forecasts. The retail sales...

17 Sep 2021

Energy is the play: how we get to $100 crude
Energy is the play: how we get to $100 crude

Natural gas futures in Europe and the UK are flying, while our natural gas (NG) CFD (the underlying is traded on the NYMEX) pushed over $5.60 and into 7-year highs...

16 Sep 2021

Are investors sleeping on systematic risk in China?
Are investors sleeping on systematic risk in China?

It’s time to talk about China. The situation is getting dicier as the nation’s second-largest property developer - Evergrande - is on the verge of default. Trading in the company...

16 Sep 2021

Sentiment sours as the S&P 500 tests key support
Sentiment sours as the S&P 500 tests key support

We head to quadruple witching in the US on Friday and notably options expiration (OPEX), and the weakness we see time and again in the week before seems...

15 Sep 2021

Dollar unscathed by soft inflation, equities resume slide
Dollar unscathed by soft inflation, equities resume slide

Dollar takes little damage despite signs US inflation has peaked - Wall Street resumes selloff - all eyes on China contagion risks - Canadian data coming up ahead of elections, gold wakes up...

15 Sep 2021

US inflation under the microscope
US inflation under the microscope

With the Fed having almost locked in a November taper announcement, the question now is whether Chairman Powell will use next week’s policy meeting to give the markets...

14 Sep 2021


Forex Forecasts

OctaFX information and reviews
OctaFX
86%
HotForex information and reviews
HotForex
85%
XM information and reviews
XM
80%
FXCM information and reviews
FXCM
79%
Vantage FX information and reviews
Vantage FX
78%
Moneta Markets information and reviews
Moneta Markets
77%

© 2006-2021 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.