Economic Updates and Impact
The second quarter GDP figures held steady at a 2.1% growth, even though it missed Dow Jones’ estimate. The government made significant cuts to the GDP readings of the first quarter from 2020 to 2022, and jobless claims came in below expectations. As the week ends, investors keenly await the personal consumption expenditures price index data, an inflation metric that the Federal Reserve closely monitors.
Oil Prices and Government Deliberations
Oil prices witnessed a surge, hitting a yearly high after a marked decrease in crude inventories. On the political front, House Speaker Kevin McCarthy expressed concerns about the Senate’s funding bill’s approach to border security. This criticism comes amid ongoing negotiations in Washington regarding the U.S. spending bill, with an impending October 1 deadline.
Short-Term Forecast
In conclusion, the market sentiment is tense, with an underlying bearish tilt due to rising rates. As investors brace for the month’s end, critical economic data and political decisions in the coming days will further shape the trajectory.
Technical Analysis
The Nasdaq 100 Index is currently trading at 14671.75, displaying some signs of potential weakness. Positioned between its 50-Day moving average of 15295.57 and 200-Day moving average of 13640.68, it remains below the shorter-term average, indicating bearish momentum in recent trading sessions.
The 14-Day RSI stands at 34.98, approaching the oversold threshold but not yet crossing it, suggesting a diminished momentum but not a complete bearish reversal.
The current sentiment leans slightly bearish, with a vigilant outlook for potential shifts in the market dynamics.
The large space on the charts between the current price and the 200-day moving average at 13640.68, makes the index vulnerable to a steep near-term correction.
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