The Nasdaq 100 index is trading lower on a mixed day for the US markets after US President Donald Trump promised potential military action to quell unrests around the US. Also adding to the Nasdaq’s woes are slumps in the share price of stocks such as Apple, Tesla, Amazon and semiconductor stocks Nvidia and Advanced Micro Devices.
The reawakening of the Huawei controversy in May 2020 has reignited fears of a renewed trade war between the US and China. The US had announced that any companies that sold chips to Huawei would be subjected to new licensing requirements if such projects made use of technology, software and equipment patented to the US. Nvidia and AMD are down 1.51% and 2.65% respectively. Apple is also down 0.62% after the company reduced the prices of its iPhones in China.
The Nasdaq 100 is presently trading 0.83% lower.
An attempt at breaking above the 9626.4 resistance level was made by the futures asset earlier today, but this effort has since fizzled out. The index is now on the way to retesting the 9452.0 price level, which is now acting as a support after being broken by yesterday’s candle, which was the second successive penetration close of that price level. If 9452.0 is unable to withstand the drawdown on the Nasdaq 100, 9264.4 becomes the next target to the downside. 9167.4 and 9092.3 are also relevant within the context of further price declines below this level.
On the flip side, a bounce on 9452.0 allows the Nasdaq 100 to make another run for 9626.4. A break of this area enables the index to push towards the 2020 all-time highs of 9755.9. There are still several news releases scheduled for this week, especially the Non-farm Payrolls report which comes up on Friday, April 5. These could impact the value of the Nasdaq 100 going forward.