NAS100 Helped by Easing Yields Awaits Mega-Cap Earnings & US Inflation

  • NAS100
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NAS100 Analysis

The tech heavy is having a challenging month after the slide of the third quarter. The Fed's hawkish bias doused the AI optimism that fueled the H1 rally and rising bond yields weigh. However, a series of Fed voters offered dovish commentary over the past several days, undermining the higher-for-longer mantra that has been detrimental to Wall Street.

Bill Gross who is often referred to as "the bond king" said on Monday that this is"yesterday's mantra" and expects yields spreads to turn positive [1]. The CEO of Pershing Square, Bill Ackman twitted that "we covered our bond short" [2], sparking a rebound in the bond market a drop in treasury yields.

The 10-yield had soared to 5% for the first time since 2007, but pulled back after those comments, helping NAS100 pause is four-day losing streak. Markets now turn to a series economic releases from the US, starting with today's PMIs and rounding off with Friday's PCE inflation update, just days ahead of the Fed's next decision. Chair Powell and other officials have scheduled speeches this week, despite the communication blackout, so they may refrain from touching on policy.

Investor are also looking forward to a series quarterly results by mega-caps at the forefront of AI, to see if the Artificial Intelligence boom has more room to run. Alphabet and Microsoft are due tonight and Amazon on Thursday. Social media giant Meta is of particular interest, reporting on Wednesday, as it runs a blowout year. Their results and commentary can impact NAS100.

The tech-heavy index is in a tough spot, in risk od further losses towards the critical 38.2% of the 2022 low/2023 high rally (13,842). On the other hand, NAS100 finds reprieve above the 200Days EMA (at around 14,220), but will need help for the incoming events to push towards the 2023 peak (15,946).

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Nikos Tzabouras

Senior Financial Editorial Writer

Nikos Tzabouras is a graduate of the Department of International & European Economic Studies at the Athens University of Economics and Business. He has a long time presence at FXCM, as he joined the company in 2011. He has served from multiple positions, but specializes in financial market analysis and commentary.

With his educational background in international relations, he emphasizes not only on Technical Analysis but also in Fundamental Analysis and Geopolitics – which have been having increasing impact on financial markets. He has longtime experience in market analysis and as a host of educational trading courses via online and in-person sessions and conferences.

References

1

Retrieved 24 Oct 2023 https://twitter.com/real_bill_gross/status/1716472973727785008

2

Retrieved 21 Apr 2024 https://twitter.com/BillAckman/status/1716450746814570860

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