Nasdaq 100 Erases 2% Decline to Shut in Optimistic Territory, Fed Chair Jerome Powell Testimony Eyed

Nasdaq 100, Curiosity Charges, Treasury Yields, Federal Reserve, FOMC – Speaking Factors

  • Nasdaq 100 recovers from 2% decline to snap current dropping streak
  • Equities stay beneath stress as charge hike bets intensify
  • Fed Vice Chair Richard Clarida electing to resign January 14th

The tech-heavy Nasdaq 100 Index staged a exceptional turnaround throughout Monday’s session to erase a 2% decline and end within the inexperienced. Equities have been as soon as once more beneath stress as rate of interest hike bets intensified, because the 10-year US Treasury yield briefly traded above 1.80% earlier than retreating barely. In a analysis observe launched Sunday, Goldman Sachs now initiatives 4 rate of interest hikes from the Federal Reserve in 2022. This revision to the forecast displays the growing expectation that the Federal Reserve will aggressively transfer to tighten monetary situations.

Following the closing bell in New York, Fed Vice Chair Richard Clarida introduced his intention to retire efficient January 14th, 2022. Clarida has served on the Fed since 2018, and his time period was set to run out on January 31st, 2022. Extra might be discovered here.

Many giant constituents of the Nasdaq 100 have been beneath stress on Monday, most notably Take-Two, which dropped over 15% after they introduced the acquisition of Zynga. Apple, Tesla, and Nvidia have been all sharply decrease early within the session, however staged sturdy rebounds to complete the session in constructive territory. Regardless of the rebound on Monday, the Nasdaq 100 Index might stay susceptible as Federal Reserve Chairman Jerome Powell heads to Capitol Hill for his nomination listening to.

Nasdaq 100 Index 1 Hour Chart

Nasdaq 100 Erases 2% Decline to Close in Positive Territory, Fed Chair Jerome Powell Testimony Eyed

Chart created with TradingView

Monday’s session lows for the Nasdaq 100 Index coincided with the 15,130 degree, which previously has acted as a big pivot level. Whereas bulls have been capable of step in at this degree and carry the index again above 15,600, near-term headwinds do stay with important occasion threat on the calendar. As talked about, Fed Chair Jerome Powell heads to the Senate for his nomination listening to, whereas Wednesday will see the discharge of key CPI (Shopper Worth Index) knowledge.

US Financial Calendar

Nasdaq 100 Erases 2% Decline to Close in Positive Territory, Fed Chair Jerome Powell Testimony Eyed

Courtesy of the DailyFX Financial Calendar

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— Written by Brendan Fagan, Intern

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