Tech investors express dissatisfaction following Fed's interest rate decision impacting NASDAQ 100 index
The NASDAQ 100 closed lower on Monday, 17th September 2023, marking a decline of 59.47 points or 0.24%. The trading session was characterised by anticipation and reaction to the Federal Reserve's (Fed) decision, which saw a 25 basis point interest rate cut as expected. However, the market reaction was muted.
The index's resistance level remains undefined, having fallen from all-time highs. The trading session was dominated by a phase of distribution, with traders taking profits ahead of the central bank's monetary policy decision. Volume analysis indicated a lively trading session, near the 20-day average, as institutional investors rebalanced their portfolios following the rate decision.
The performance of sectors was mixed. The cyclical consumer goods sector showed strength, while the influential technology sector remained slightly in the red due to pressure from companies like NVIDIA, which faced extended chip sales bans in China. MicroStrategy was among the biggest winners, while Warner Bros. Discovery was one of the biggest losers after a downgrade.
The Dow Jones Industrial Average posted gains during the same trading session, indicating a rotation from growth-oriented technology stocks into other sectors. This suggests a more balanced risk profile in the near term for the NASDAQ 100.
The yield on 10-year US Treasury notes initially rose to 4.05%, but eased slightly after the Fed's decision. This rise had an immediate impact on the valuations of technology stocks, as momentum indicators like the RSI cooled slightly during this consolidation. The NASDAQ 100 is currently navigating a crucial technical price zone.
It's worth noting that the trading session was significant due to the urgency of actions highlighted in a free analysis published on the same day, emphasising the importance of investor actions in the NASDAQ 100. However, there are no search results indicating who published this analysis.
In conclusion, the NASDAQ 100 ended a volatile trading session in the red, with the technology sector facing pressure. The Dow Jones posted gains, suggesting a potential shift in focus to other sectors. The Fed's interest rate cut and the impact on Treasury yields and valuations remain key factors to watch in the near term.
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