The recent bearish sentiment plaguing the stock market may be at an end. The Nasdaq has suddenly broken recent patterns and jumped up in price. Their August woes may be over. This Monday, following a four day long dip, the Nasdaq Composite made an upwards break. This is notable for such a tech-heavy index. This has all meant positive sentiments for Wall Street, and an upwards Nasdaq forecast.
We compare and contrast the usual indices. The S&p 500 rose up 0.6%, while the Nasdaq rose a staggering 1.6%. The Dow Jones did not do so well, losing 0.1%, but this is not so bad if you consider that its losses stand at over 3.2% from the start of the month. We can see that the Nasdaq discussion has changed considerably.
These indices have generally not acted in tandem within this last month. The Dow Jones had been in the lead. That was until Monday, as the situation seems to have reversed now.
This may be due to these being tech-heavy indices. Tech stocks have made major gains in markets recently. There are some significant tech stocks expected to make further gains, including Zoom and Nvidia. Zoom had very positive earnings reports, and Nvidia has been doing well in the past year. It would be worthwhile keeping an eye on Nasdaq forums for further moves.
This is all despite an economy that has been fairly negative and investor mood being low due to the Fed’s stance on interest rates. It had led to losses in the market last week, since future interest rate markups seemed likely.
Bond yields have been climbing higher, which has been an ongoing pattern, and is an indicator that investors are preparing for interest rates to remain high for a while. As it stands, the Treasury bond is at 4.34% in the 10-year range, higher than any levels after 2008.
Soon enough the Fed’s decision on interest rates is bound to become important. There will be an annual gathering of prominent bankers who will be present during the Fed Chair’s, Jay Powell’s, speech. This will point to where the Nasdaq forecast will likely go.
