The Nasdaq 100 shed 1.89% on Monday, falling from an opening level of 21,138.6 to close at 20,739.00. Intraday volatility saw the index reach a high of 20,887.50 before tumbling to a low of 20,711.35, reflecting mounting pressure from macroeconomic forces.
The consistent downward trend aligns with bearish momentum seen across U.S. equity markets, largely driven by rising Treasury yields and the continued strength of the U.S. dollar.
The decline comes as the 10-year Treasury yield climbed to 4.79%, its highest in 14 months. Higher yields increase borrowing costs, disproportionately impacting tech companies that rely heavily on long-term growth expectations.
The tech-heavy Nasdaq 100 is particularly vulnerable to rising yields. As borrowing costs climb, companies in the index face challenges in financing innovation and expansion.
Picture: Nasdaq 100 falls to 20,739, testing support at 20,711 as bearish momentum dominates, as seen on the VT Markets app.
Looking at the chart, the Nasdaq 100 fell 1.89%, closing near 20,739 after testing intraday support at 20,711. The 15-minute chart reveals downward-sloping moving averages (MA5, MA10, MA30), indicating persistent selling pressure.
The MACD (12,26,9) histogram remains deep in negative territory, with a widening gap between the MACD and signal lines, reflecting strong bearish momentum.
This decline aligns with broad weakness in the tech sector, as investors react to mixed US economic data and concerns about corporate earnings.
Rising bond yields and the possibility of continued Federal Reserve tightening further weighed on sentiment, prompting profit-taking and risk-off trading.
Furthermore, the strong dollar adds to the headwinds for companies with significant international exposure, eroding competitiveness and squeezing profit margins.
With Microsoft and Tesla set to announce their results, markets are buzzing with questions about how they’re navigating current economic hurdles.
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