S&P 500 and Nasdaq 100 Hit as Tesla Sinks 12%, Economic Concerns Rise – By ASC


  • The S&P 500The Nasdaq 100 and Dow Jones plummet amid growing concerns that the U.S. economy is heading for a tough landing
  • The Nasdaq 100 led losses on Wall Street as tech stocks bore the sell -off
  • This article looks at the main technical levels for yang Nasdaq 100 to watch in the coming days

Most read:S&P 500 and Nasdaq 100 Review – Annual Low Test Likely to Appear

After a late Monday rally and a remarkable recovery in the equity space, investors hoped the recovery would be consolidated in the near term, but those positive expectations were shattered on Wednesday by brutal and widespread sell -offs triggered by growing economic concerns.

At the closing bell, the S&P 500 plunged 2.81% to 4.175weighed by 12% plunged in Tesla’s share price, with most sectors in the index down except for energy, which recorded small gains. The The Dow Jones, for its part, was down 2.38% to 33,240, closing at its worst level since mid -March, dragged down by a sharp decline in global consumer Nike. Meanwhile, the Nasdaq 100 led losses on Wall Street and plunged 3.87% to 13,009, re-entering bearish market territory and setting a new 2022 low amid widespread technological weakness.

No specific catalyst is triggered today defeataside from growing concerns that the U.S. economy is targeted deterioration assuming that the Fed’s aggressive tightening cycle in response to soaring high inflation will stifle growth and affect corporate profits in the future. Risk aversion is evident in the bond market, with Treasury prices higher overall.

Faced with rising volatility (VIX above 30) and traders fading each rally, risk appetite will remain weak in the near term, creating a push wind for stocks and preventing a sustained rebound in key averages. While quarterly results and forward -looking reviews during the current reporting period were healthy for the most part, investors were unconcerned and continued to reduce risk exposures, even dumping companies that had recorded robust earnings growth and issued constructive guidance, such as Tesla.

While pessimism and selling activity appear excessive, current dynamics are likely to continue at least until next week when the FOMC announces its May monetary policy decision. If the U.S. central bank manages to convince investors that they will engineer a weak economic landing and will not trigger a recession, the stock market could begin to stabilize, paving the way for a more lasting recovery. Whether this scenario or not will play is uncertain, but traders shouldn’t put all their hopes on the Fed, because high inflation four decades limiting policymakers ’alternatives.


Following a recent sale, the Nasdaq 100 set a new low 2022 near 13,000 marks, key support zone as shown in the daily chart below. With the index in the market declining and sentiment tapering every day, break below 13K the area seems to be increasingly likely. If a bearish scenario occurs and the seller refuse price bdown that level strictly, we could see a movement towards 12,630 in the next session, and maybe 12,225.

Conversely, if the buyer resurfaced and managed to trigger a bounce, an initial resistance a lie at 13,720. On the next strength, focus shift higher to a 50 -day simple moving average, followed by 14,300, but despite that resistance level has been taken outtechnical damage is so extreme that the balance of risk will still head downwards for technology benchmarks.

The Nasdaq 100 (NDX) chart is available in TradingView


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— Written by Diego Colman, Contributor


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