The Nasdaq 100 index has risen sharply in the past few days as the earnings season continues. The tech-heavy index rose to a high of $12,400, which was the highest level since June 9th of this year. In addition, it has jumped by almost 13% from its lowest level this year as the VIX index has tumbled to the lowest level since June 8th.
Has the Nasdaq sell-off bottomed?
The Nasdaq 100 index has risen sharply in the past few days for several reasons. First, investors have scaled down their Fed hikes expectations. After predicting that the bank will hike interest rates by 100 basis points last week, most analysts believe that the bank will hike by 0.75% next week.
Tech-heavy stocks tend to do in a period when the Fed is less hawkish. This also explains why the US dollar index has pulled back from last week’s high of $109 to $106. It also explains why cryptocurrencies like Bitcoin and Ethereum have rallied recently.
The Nasdaq 100 index has also rallied because of the falling volatility. The closely-watched VIX index has crashed to the lowest point in more than a month. Similarly, the fear and greed index has moved from the extreme fear level to the current 35.