Key points
The Nasdaq composite index (Symbol: NAS100) experienced significant declines, closing at its lowest level since early June after another volatile session. This marks the worst two-day drop in nearly two years as the tech sector continues to struggle.
Picture: The Nasdaq composite hits 7-week lows during tech rout, as observed on the VT Markets app.
Despite higher-than-expected second-quarter GDP growth and decreasing price pressures, which briefly boosted stocks and risky assets with the Nasdaq 100 rising 0.9% during midday trading in New York, sentiment shifted in the afternoon.
Traders slightly reduced their Fed rate cut bets, leading to further declines.
Key movement in the market includes Alphabet Inc. (Symbol: GOOG), which tumbled as OpenAI introduced new search features to a select group of users, impacting investor confidence in Alphabet’s future growth prospects.
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Looking ahead, the market will likely continue to react to macroeconomic indicators and tech sector developments. Traders should stay informed about Fed announcements and corporate earnings reports to navigate the ongoing volatility effectively. The current volatility in the tech sector presents both opportunities and risks.
The sharp declines highlight the importance of closely monitoring market sentiment and key economic indicators. With the recent shifts in Fed rate cut bets, traders should be cautious and consider potential rebounds or further declines in the coming sessions.
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