The Nasdaq 100 index is up for the 2nd day in a row, albeit with low volumes as the risk-sensitive index aims to recover from recent big drops.
The initial selloff came after the Fed’s 50bps rate hike and Non-farm Payroll data that paved the way for additional rate hikes by the Fed. Wednesday’s trading session has remained choppy, with price action oscillating between positive and negative territory. This is showcased as the doji candle on the daily chart, sitting just above the 12772.9 support level.
Despite the mild gains of the last two sessions (today’s session inclusive), the Nasdaq 100 index could face new headwinds after authorities in China said they would impose stricter COVID-19 control measures as the Shanghai lockdown enters its 7th week. New cases of the Omicron variant of COVID-19 continue to surge in China despite the strict lockdown.
There are reports of authorities inspecting nearly 800 buildings as they seek for active cases. Chaoyang District is one of the areas which has seen mass testing of residents, with residents of Beijing set to undergo mass PCR testing even as the government has closed all entertainment centres.