#nasdaq100falls5.5%inworstweekin18months
The NASDAQ 100 index fell 5.5%, posting its worst weekly performance in 18 months, amid a wave of brutal sell-offs hitting tech giants. 📉
Here are the main reasons behind this sharp market shock, along with the technical details:
🔍 The real reasons behind the decline
Employment data and recession fears: U.S. macroeconomic data, particularly nonfarm payroll figures, came in below expectations, reigniting fears of a sharp economic slowdown (recession). Expectations surrounding the Fed’s interest rate decision (🏦): Portfolio managers began to wonder whether the Federal Reserve (Fed) had been too slow to cut rates. Expectations of a 25-basis-point cut were not enough to satisfy the markets. Fears of an artificial intelligence bubble (🤖): Questions about when investments in artificial intelligence by tech giants (the “Magnificent Seven”), such as NVIDIA, Apple, Microsoft, and Alphabet, would pay off accelerated profit-taking.
📊 Technical situation and levels
Oversold territory (📉): This rapid pullback brought the index closer to technically oversold territory. Support levels (🛑): Investors and institutional funds are watching the index’s 50-day and 200-day moving averages (MAs), considered key support levels.
$AGT
$EPIC
$AVA
The NASDAQ 100 index fell 5.5%, posting its worst weekly performance in 18 months, amid a wave of brutal sell-offs hitting tech giants. 📉
Here are the main reasons behind this sharp market shock, along with the technical details:
🔍 The real reasons behind the decline
Employment data and recession fears: U.S. macroeconomic data, particularly nonfarm payroll figures, came in below expectations, reigniting fears of a sharp economic slowdown (recession). Expectations surrounding the Fed’s interest rate decision (🏦): Portfolio managers began to wonder whether the Federal Reserve (Fed) had been too slow to cut rates. Expectations of a 25-basis-point cut were not enough to satisfy the markets. Fears of an artificial intelligence bubble (🤖): Questions about when investments in artificial intelligence by tech giants (the “Magnificent Seven”), such as NVIDIA, Apple, Microsoft, and Alphabet, would pay off accelerated profit-taking.
📊 Technical situation and levels
Oversold territory (📉): This rapid pullback brought the index closer to technically oversold territory. Support levels (🛑): Investors and institutional funds are watching the index’s 50-day and 200-day moving averages (MAs), considered key support levels.
$AGT
$EPIC
$AVA