Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.

The vast majority of retail client accounts lose money when trading CFDs.

You should consider whether you can afford to take the high risk of losing your money.

Important Notice - Fraud awareness
Important Notice - Scam alert
The vast majority of retail client accounts lose money when trading CFDs.
Important Notice - Fraud awareness
Important Notice - Scam alert
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail client accounts lose money when trading CFDs. You should consider whether you can afford to take the high risk of losing your money.
Important Notice - Fraud awareness
Important Notice - Scam alert
The vast majority of retail investor accounts lose money when trading CFDs / Spread betting with this provider.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail investor accounts lose money when trading CFDs / Spread betting with this provider. You should consider whether you understand how CFDs / Spread betting work and whether you can afford to take the high risk of losing your money.
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US Tech Stocks (NAS100) Are Testing the June Lows

The US Nasdaq index of technology stocks is sitting perfectly at the lows from June.

After today’s bearish activity, it will be a key crossroads and an important day on Friday.

Daily NAS100 Chart

nasdaq 100 chart september

The June lows were at 11,030 and the NAS100 closed at 11,167.

The US economy shrank by 0.6% annually from April through June, according to government figures announced Thursday. The number was unchanged from a previous second-quarter estimate and did not move markets. It was the second consecutive quarter of economic contraction, which is normally an indicator of recession, but economists feel the strong job market could save the economy from a further downturn.

Consumer spending grew at an annual rate of 2%, but that gain was offset by a drop in business inventories. Inflation is also hurting household spending and investments.

The US economy has been a mixed bag this year, with GDP slumping, but the job market has stayed strong. Employers are adding an average of 438,000 jobs a month this year, which is on pace to be the second-best for hiring behind the 2021 post-covid surge. Going back to 1940, unemployment was at 3.7%, and that is low by historical measures. There are currently around two jobs for every unemployed American.

However, the Federal Reserve’s aggressive moves on interest rates have hurt consumers, and the central bank’s chief, Jerome Powell, has said that a slowdown in house prices is likely.

"We have got to get inflation behind us," Powell said last week. “I wish there was a painless way to do that. There isn’t.

The US economy on Friday will see the release of consumer sentiment figures and some PCE inflation data.

There are still risks for the tech sector of US stocks as analysts fear further losses on the high US dollar. More than two-thirds of analysts surveyed in a 914-strong MLIV Pulse survey think the profits of technology companies will continue to disappoint the market in 2022. Firms, including Google, are at risk of further cuts in advertising spending as the global economy continues to struggle. Streaming services, including Netflix Inc., are also facing an exodus of price-sensitive subscribers with consumers having to tighten their belts.

Apple Inc. announced that it will raise app store prices in Asia and countries that use the euro as the value of foreign currencies falls relative to the dollar. Microsoft also lowered its forecast because of the currency’s strength in June. This low in tech stocks will be a key level over the next week or two.

Last Updated: 30/09/2022

This market commentary and analysis has been prepared for ATFX by a third party for general information purposes only. Any view expressed does not constitute a personal recommendation or solicitation to buy or sell as it does not take into account your personal circumstances or objectives, and should therefore not be interpreted as financial, investment or other advice, or relied upon as such. You should therefore seek independent advice before making any investment decisions. This information has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. We aim to establish and maintain and operate effective organisational and administrative arrangements with a view to taking all reasonable steps to prevent conflicts of interest from constituting or giving rise to a material risk of damage to the interests of our clients. The market data is derived from independent sources believed to be reliable, however we make no representation or warranty of its accuracy or completeness, and accept no responsibility for any consequence of its use by recipients. Reproduction of this information, in whole or in part, is not permitted.


 

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