The Nasdaq 100 bounced off its long-term uptrend line at 28,868 and now trades back near its 55-day moving average, with the next hurdle at the 11 September high of 29,473. The bounce comes as bond yields surge and traders brace for Wednesday's Fed decision, where markets price a 90% chance of a quarter-point rate hike.
Nasdaq 100 bounces off its uptrend line
The Nasdaq 100 bounced off its March-to-September uptrend line at 28,868 and trades back near its 55-day simple moving average at 29,236. Just above sits the 11 September high at 29,473, which needs to be cleared before the late August-to-September highs at 29,655-to-29,753 come into view.
Support sits at the late August-to-early September lows of 28,953-to-28,876 and the 14 September low at 28,868. A slip through that zone and the 8 July low at 28,815 would put the June and mid-July lows at 28,231-to-28,197 back in sight. The short-term outlook stays bearish while the index holds below the 29,473 high, but the medium-term view remains bullish as long as it holds above 28,868.
Bond yields jump ahead of the Fed decision
The bounce comes against a backdrop of sharply rising bond yields. Oil price gains have fuelled inflation concerns ahead of the Fed and Bank of Japan meetings, pushing the benchmark 10-year US Treasury yield above 5.02%, its highest level since mid-2007. Japan's 10-year yield climbed to a fresh 30-year high of 3.025% over the same stretch.
Markets are now pricing a 90% chance of a quarter-point rate hike on Wednesday, which would mark the first US rate hike since mid-2023, while Morgan Stanley expects another move in December.
Asian tech shares slide on AI slowdown calls
Asian equities also retreated after prominent AI figures called for a slowdown in development, sending MSCI's Asia-Pacific index excluding Japan down 0.8%, with South Korea leading regional losses with a 1.18% decline. The pressure on tech sentiment abroad sits alongside the Nasdaq 100's own test of resistance at home.
Source: IG
Trading involves risk.
Risk Disclaimer
