The Nasdaq 100 index opened higher on the day but has lost all its gains and now trades 0.46% lower as optimism about improving the global outlook seemed to fade.
China’s lifting of the Shanghai lockdowns has also appeared not to excite the risk-sensitive Nasdaq 100 index. US long-term yields are 1.18% higher on the day, reflecting the continued shift of investment capital from the stock market to the bond market.
This week’s major fundamental trigger for the US markets is the Fed’s inflation gauge, the Core PCE Price Index (m/m). The period covered in the same period showed a spike in consumer inflation to 41-year highs. A higher-than-expected print could reinforce additional rate hikes bet, potentially lowering the Nasdaq 100 index.
The Independence Day weekend means that the customary release of the US jobs numbers on the first Friday of the month will be delayed to next week. Morgan Stanley says declining CEO confidence could show new risks to the outlook for employment. This indication from the investment bank came as CEO Confidence Index fell to 5.6/10, the lowest level in ten years.