The Nasdaq 100 index is extending yesterday’s decline today after US unemployment claims came in worse than expected. According to data posted by the Department of Labor, the initial jobless claims came in at 1480K, which was more than the 1320K that markets were expecting. Although higher than the 1540K revised figure posted last month, the continued filing of such claims in the millions indicate that the employment conditions worsened by the coronavirus pandemic is yet to go away, despite stimulus packages from the Fed.
The figure represents the 14th consecutive week that more than a million first-time applicants have filed for these benefits,
and with the coronavirus staging a resurgence in the US, markets are starting to brace up for a long haul of a shattered employment sector.
Consequently, the Nasdaq 100 is down by 1.00% and has dropped below the 10,000 mark on the day.
One of the talking points on the Nasdaq 100 is the growing boycott of the Facebook ad platform by advertisers. Facebook has been accused of not reigning in hate speech and racism on its platform. Already, several popular brands have ceased running ads on Facebook. The fallout has had Facebook shares reeling, as it dropped 3.4% on Wednesday and is down 0.54% today as at the time of writing.
Download our Q2 Market Global Market Outlook
Technical Outlook for Nasdaq 100
The Nasdaq 100 index’s pullback for the 2nd day takes the asset to the 9908.8 mark, with the asset looking firmly on offer. It is now threatening the intraday lows of the week at 9867.1. A drop below this low targets 9730.2, with a 9626.4 being the point at which the lower channel border interacts with this support area. A breakdown of this border will then have room to pursue a course towards 9452.0 and 9264.4, with 9167.4 and 9092.3 also becoming relevant if the decline is extensive.
On the flip side, a bounce off the intraday lows of the previous days of the week may allow the asset to bounce and retest the 10156.50 resistance target. Only a surge above this target takes the Nasdaq 100 to 10201.5, which would then be a new record high.
Don’t miss a beat! Follow us on Telegram and Twitter.
More content
- Download our latest quarterly market outlook for our longer-term trade ideas.
- Follow Eno on Twitter.
- Do you enjoy reading our updates? Become a member today and access all restricted content. It is free to join.