May 30, 2023
Tech stocks push the NASDAQ lower.
Hot Forex Review
Stock & Indices

Tech stocks push the NASDAQ lower.

While banking concerns decreased and US consumers ignored the recent turmoil with higher confidence, higher Yields put the significant tech shares under pressure. Earlier today, the WSJ also reported that the Facebook owner plans to lower bonus pay for some employees and assess staff performance more frequently, which decreased the Meta Platform share value on Wall Street.

On top of that, yields on US bonds raised again today, as a 25 bps rate hike again gets more chance, as FedWatch tools show. The yield on the 2-year Treasury rose above 4% to 4.05%, while the yield on the 10-year Treasury was 3.573%. According to FedWatch tools, now 25 bps rate hike and pause have an equal chance.

In addition, the latest Conference Board (CB) consumer confidence data shows that the level of consumer confidence in economic activity in March rose to 104.2, much higher than expectations of 101 for this month, considering our different tensions.

These data pressure the extensive stocks and tech sector. Nasdaq Composite has lost more than 0.6% at the time of writing. From the technical point of view, considering the extreme price divergence in the range of 11,000 to 11,600, we can call it the bottom line in the Daily timeframe, where we can see lots of buys that can pause the bears there. Price in larger timeframes moves above 11,600, but with RSI around 55, bulls do not have enough strength to move forward. 12,900 is the first resistance, but the bulls will have 13,700 if they want to take control of the chart. For now, and in the short term, we expect a side movement around the current levels to have a more substantial reason to find the direction.

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