Pelosi Taiwan trip rattles tech-heavy NAS100

  • NAS100

China Unhappy with Pelosi Trip

Reports suggest that US House of Representative Speaker Nancy Pelosi will visit Taiwan. In response, Chinese foreign ministry spokesman Zhao Lijian commented that this would be "a gross interference in China's internal affairs" and lead to "serious developments and consequences."

NAS100/US30 and NAS100/SPX500 - Hourly Charts

This escalation has introduced an added element of risk, which is being felt mainly by the tech-heavy Nasdaq. Since the news was released, the NAS100 has underperformed the US30 and SPX500. This market action is hardly surprising, given that around 90% of the world's advanced chips come from Taiwan.

Chips from Taiwan Semiconductor Manufacturing ( are integral to Apple, Qualcomm and products. To add to this complexity, China is a significant customer of US tech companies, with iPhones generally manufactured on the mainland.

NAS100 Hourly Momentum

The hourly FXCM Nasdaq CFD, NAS100, shows the deterioration in the index. Its stochastic has dropped below 20, suggesting an entrenched bearish momentum. As long as the indicator holds these levels, the NAS100 will be under pressure. The risk premium is adjusting as the market digests how Pelosi's trip will affect US/China relations.


Russell Shor

Senior Market Specialist

Russell Shor joined FXCM in October 2017 as a Senior Market Specialist. He is a certified FMVA® and has an Honours Degree in Economics from the University of South Africa. Russell is a full member of the Society of Technical Analysts in the United Kingdom. With over 20 years of financial markets experience, his analysis is of a high standard and quality.

${} / ${getInstrumentData.ticker} /

Exchange: ${}

${} ${getInstrumentData.divCcy} ${getInstrumentData.priceChange} (${getInstrumentData.percentChange}%) ${getInstrumentData.priceChange} (${getInstrumentData.percentChange}%)

${getInstrumentData.oneYearLow} 52/wk Range ${getInstrumentData.oneYearHigh}

Any opinions, news, research, analyses, prices, other information, or links to third-party sites contained on this website are provided on an "as-is" basis, as general market commentary and do not constitute investment advice. The market commentary has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and it is therefore not subject to any prohibition on dealing ahead of dissemination. Although this commentary is not produced by an independent source, FXCM takes all sufficient steps to eliminate or prevent any conflicts of interests arising out of the production and dissemination of this communication. The employees of FXCM commit to acting in the clients' best interests and represent their views without misleading, deceiving, or otherwise impairing the clients' ability to make informed investment decisions. For more information about the FXCM's internal organizational and administrative arrangements for the prevention of conflicts, please refer to the Firms' Managing Conflicts Policy. Please ensure that you read and understand our Full Disclaimer and Liability provision concerning the foregoing Information, which can be accessed here.

Past Performance: Past Performance is not an indicator of future results.

Spreads Widget: When static spreads are displayed, the figures reflect a time-stamped snapshot as of when the market closes. Spreads are variable and are subject to delay. Single Share prices are subject to a 15 minute delay. The spread figures are for informational purposes only. FXCM is not liable for errors, omissions or delays, or for actions relying on this information.