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Nasdaq 100 Market Update

1/12/2023 1:19 PM

The leading US tech index, the Nasdaq 100, is corrective at 11413.0 ahead of today's release of inflation statistics for December.

Current forecasts suggest a slowdown in consumer price growth from 7.1% to 6.5%, which may strengthen market confidence that the US Federal Reserve is nearing the end of the current interest rate hike cycle. In his speech this week, the Chair of the regulator, Jerome Powell, did not announce possible steps to tighten monetary stimulus, noting that officials could take politically unpopular measures to maintain price stability and restore the national economy. Investors are aware that the value will rise further, but hopes that the increment can be adjusted to 25 basis points from 75 basis points allow businesses to more accurately calculate long-term costs.

In turn, the situation on the debt market contributes to the local growth of the stock market: the rate of return on 10-year bonds is at the level of 3.526%, decreasing by 0.84%, and the yield on 20-year bonds is 3.8199%, significantly lower than the key level of 4.0000% it retreated from at the beginning of the month.

The growth leaders in the index are Lucid Group Inc. (+10.29%), Atlassian Corp. Plc. (+7.28%), Airbnb Inc. (+6.66%), Inc. (+5.81%).

Among the leaders of the decline are DexCom Inc. (-4.26%), Intuitive Surgical Inc. (-4.20%), AstraZeneca Plc. ADR (-1.61%), Moderna Inc. (-1.59%).

On the daily chart, the index quotes continue to correct, moving away from the low of the year at around 10660.0.

Technical indicators are ready to reverse again and give a new buy signal: fast EMAs on the Alligator indicator are approaching the signal line, and the AO oscillator histogram is forming new upward bars, approaching the transition level.

Support levels: 11160.0, 10660.0. | Resistance levels: 11600.0, 12200.0.

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