Tech stocks continue their decline amid a hike in the Fed Funds Rate, which will hit the sector’s funding interest burden. Nasdaq closed lower by more than 2%, leading the declines among Wall Street’s major indexes, after the Fed’s meeting minutes released its plan to reduce its balance sheet and take hawkish stance. This sentiment also weighed on the US Treasury market, with yields on UST10Y up more than 5 bps to 2.60%, the highest level in 3 years. Meanwhile, the US dollar index (DXY), an indicator of the USD against six major currencies, strengthened to 99.77, its strongest level in two years.
The wait-and-see attitude for the Fed’s minutes led a number of investors to take profit-taking yesterday. JCU closed down by 0.6% to 7,104, after multiple record-breaking levels in five trading days. Market participants also responded negatively to the news of Deutsche Bank, the first bank on Wall Street to project a US recession in late 2023 or early 2024, due to the Fed’s aggressive stance. NHKSI Research projects that today JCI will move upward (rebound) with a range of 7,080-7,200.
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