Nasdaq Bounces Off Lows
It’s been a wild ride already this week for global markets with equities seeing heavy whipsaw over the last 24 hours. Following a gap lower in the Nasdaq yesterday, the index rebounded sharply, trading up by almost 10% off the lows before settling a bit lower but ultimately closing the day in the green. Nevertheless, the market is sitting at the foot of an almost 16% decline from the month’s highs and is down around 25% from the YTD highs.
Negotiations Optimism
The move higher yesterday comes amidst rising optimism that Trump will enter negotiations over the sweeping trade tariffs announced last week. While rhetoric remains firmly hostile towards China, there is a view that Trump will perhaps look to negotiate and form trade deals elsewhere while keeping China under pressure.
US Treasury Secretary’s Comments
Speaking yesterday, US Treasury Secretary Scott Bessent said that trade tariffs were necessary but expressed his hope that negotiations could help bring levies down. Finally, Bessent also signalled that he doesn’t share the view that the US is necessarily headed for recession. Together, these comments have helped fuel some recovery action in stocks. Furthermore, Fed easing expectations have risen in the wake of recent market turmoil, further supporting sentiment on Tuesday. Traders now look ahead to the US open to see if the recovery can continue today.
Technical Views
Nasdaq
The sell off in the Nasdaq has seen the index collapsing below the 18.912.17 level, currently testing support at the 17.034.53 which is holding for now. Momentum studies remain bearish, highlighting risks of a further slide towards 16,125. However, while current support holds, focus is on a rebound a test of the 18,912.17 next.
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With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.