The index continued to slide in early trading today, opening at 17,462.50 and subsequently dropping to 17,442.75, reflecting ongoing investor apprehension ahead of key economic data and the Federal Reserve’s rate decision.
Key Points
- Losses in chipmakers like AMD and Super Micro Computer were sparked by disappointing earnings forecasts.
- Continued decline today with Nasdaq 100 at 17,442.75 amid investor anxiety before key economic data and the Fed’s rate decision.
- Today’s crucial economic releases include ADP employment, S&P and ISM manufacturing PMIs, and JOLTS job openings.
NASDAQ 100 Daily Price Analysis – 01/05/2024
Yesterday, the Nasdaq 100 faced significant downward pressure, closing at 17,571.25 after opening at 17,918.50, marking a decline of 1.86%. This drop was primarily driven by a decrease in demand for tech stocks, with Tesla notably losing 5% as investors capitalized on gains following its recent upsurge from yearly lows.
Other key contributors to this decline included Advanced Micro Devices and Super Micro Computer, which fell significantly in premarket trading following disappointing earnings forecasts and revenue figures, respectively. This sentiment spilled over into other major chipmakers like Nvidia and Micron Technology, each dropping over 2%.
As of the latest available data for today, the Nasdaq 100 opened at 17,462.50 and is currently trading lower at 17,442.75, down by 0.73% from yesterday’s close. This continued decline underscores persistent investor anxiety, particularly as high-impact economic events loom on the horizon. The early movements suggest a guarded market stance, with investors possibly bracing for the Federal Reserve’s interest rate decision later today.
Key Economic Data and News to Be Released Today
Investors’ focus today will be riveted on a slew of crucial economic data expected to shape market sentiments. The ADP National employment report and the S&P Global final manufacturing PMI will offer early signals, followed closely by the ISM manufacturing PMI and JOLTS job openings.
The spotlight will intensify as the Federal Reserve concludes its two-day meeting. With current market pricing reflecting minimal expectations for rate cuts—only about 28 basis points for the year according to LSEG data—the anticipation is palpable.
US100 Technical Analysis – 01/05/2024
The Nasdaq 100 shows a clear bearish trend, staying below the 200 EMA. On the other hand, the RSI is oversold, hinting that a temporary recovery might occur soon.
So, it is advised that traders looking to sell this index should wait for a close below 17,379.00 to confirm a stronger sell signal. This could indicate further declines, aligning with the ongoing bearish trend.
NASDAQ100 Fibonacci Key Price Levels 01/05/2024
Here are some critical support and resistance levels to pay attention today:
| Support | Resistance |
| 17484.25 | 17825.75 |
| 17379.00 | 17931.00 |
| 17208.25 |
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