The Nasdaq 100 index is under intense pressure as traders wait for the latest consumer inflation numbers that will come out later today. The index dropped slightly on Tuesday while its futures have dropped by more than 0.60%. Other global indices like the Dow Jones, Nikkei 225, and Hang Seng have all slumped.
Nasdaq 100 index news: The Nasdaq index is the index that tracks the biggest American technology companies. It has been on a strong upward trend in the past few years, helped by the rising appetite for fast-growing technology companies.
However, this week, the index has declined as investors continue to worry about inflation and the potential for high-interest rates. The US statistics agency will publish the latest CPI numbers later today. Analysts expect them to show that consumer prices rose at the fastest pace in a decade. Furthermore, the prices of every commodity like iron ore, copper, and crude oil have been rising.
The Nasdaq 100 index has declined because of fears of growth. While most technology companies like Facebook and Google reported strong results, there are concerns about whether this growth will continue for the rest of the year.
The best performers in the Nasdaq 100 index were Splunk, Peloton, Zoom, Atlassian, and Match Group. On the other hand, the worst performers in the index were Dollar Tree, Verisk, CDW, and Tesla.
Nasdaq 100 index forecast
The four-hour chart shows that the Nasdaq 100 index rose to an all-time high of $14,085 in April. It then retreated by more than 5% as worries of high inflation remained. The index has formed what looks like a rounded top pattern and dropped below the 50% Fibonacci retracement. It is currently slightly below the 38.2% retracement. It has also moved below the short and longer-term moving averages, which is a sign that bears are prevailing.
Therefore, the index will likely remain under pressure before the CPI data. Nonetheless, we can’t rule out a pullback as traders fade the news.