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Nasdaq 100 Market Update

3/13/2023 1:13 PM

The Nasdaq 100 index is showing corrective dynamics, being at the level of 12057.0 against the backdrop of an ambiguous situation in the bond market.

Silicon Valley Bank (SVB), one of the largest banks in the world in terms of venture capital, has announced plans to reorganize its global portfolio by getting rid of securities that bring the greatest loss. Investors took this as a signal of possible bankruptcy and began to actively withdraw deposits due to concerns about the financial stability of the organization, after which the bank's shares collapsed by 60%, and trading in the instrument was suspended by the decision of the Nasdaq Inc. exchange. Silicon Valley Bank's assets at the end of 2022 were 212.0 billion dollars, most of which (120.0 billion dollars) were placed in securities, mainly bonds. Thus, the SVB bankruptcy was the largest in US history since the closure of Washington Mutual Inc. in 2008.

Last week, US bonds began to correct after the "hawkish" remarks by the Chair of the US Federal Reserve, Jerome Powell, about the possibility of keeping interest rates at high levels for a longer time than previously planned. Nevertheless, futures for the indicator have started to fall again today, and now the probability of a 50 basis point increase in the cost of borrowing is estimated below 50%, while on Friday it was 70%. In turn, 10-year bonds are traded at a rate of 3.706%, almost unchanged compared to the end of last week.

The growth leaders in the index are Intel Corp. (+2.95%), Amgen Inc. (+0.92%), Palo Alto Networks Inc. (+0.70%), Gilead Sciences Inc. (+0.70%).

Among the leaders of the decline are Atlassian Corp. (-8.36%), Datadog Inc. (-6.82%), Marvell Technology Group Ltd. (-5.45%), Zscaler Inc. (-4.53%).

On the daily chart, the index quotes continue to correct within the Expanding Formation global pattern, holding near the resistance line.

Technical indicators, which recently reversed towards the sales, are uncertain: the fast Alligator indicator EMAs crossed the signal line from above, and the AO histogram is forming corrective bars in the sales area.

Support levels: 11800.0, 11300.0. | Resistance levels: 12200.0, 12700.0.

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