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Nasdaq 100 Bond Market Puts Pressure on the Asset

3/1/2023 1:44 PM

Against the background of growth in the bond market, one of the leading US indices Nasdaq 100 is correcting at 12053.0, and even financial reports are not able to significantly affect its dynamics.

The popular conferencing platform Zoom Video Communications Inc. released data yesterday, and although the peak periods for the company are behind, it shows stable growth: revenue was $1.12B dollars, up from $1.1B dollars a quarter earlier, and profit per share reached $1.22 dollars, up from $1.07 dollars previously.

The stock market is under pressure from the bond market, with popular 10-year yields hitting 3.9340% and up 0.55% today, conservative 20-year yields well above the 4.0% threshold, up 0.30% to 4.123%, and global 30-year bonds are at 3.928%, which covers the cost of 30-year mortgage loans by more than 60.0%, which is an undeniable advantage compared to risky investment assets.

The growth leaders in the index are Rivian Automotive Inc. (+4.61%), Lucid Group Inc. (+4.22%), Applied Materials Inc. (+3.64%), and Meta Platforms Inc. (+3.19%).

The decline leaders are Constellation Energy Corp. (–4.44%), Diamondback Energy Inc. (–2.62%), Exelon Corp. (–2.51%), and AstraZeneca Plc. (–2.43%).

On the daily chart, the trading instrument is correcting within the global Expanding formation pattern, declining towards the support line.

Technical indicators gave a sell signal: fast EMAs on the Alligator indicator crossed the signal line downwards, and the AO histogram is forming downward bars, falling in the sell zone.

Resistance levels: 12300.0, 12900.0. | Support levels: 11900.0, 11200.0.

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