NASDAQ ‘Technical Bounce’ Fails to Overcome Rate Hike Driven Selling Pressure

Monday's mid-session lows for the tech-weighted NASDAQ Composite are being met with lower activity. Earlier in the session, the index tried to reach a one-month low before recovering more than half of that loss. Investors' concerns about the Federal Reserve's intention to keep increasing interest rates in its battle against inflation, even at the expense of an economic downturn, are feeding the selling pressure.

Oversold technical conditions, a slight decline in U.S. Treasury yields from a steep price earlier in the session, and a weaker U.S. Dollar are likely behind today's rebound rally.

The NASDAQ Composite is at 12058.12 at 18:20 GMT, down 83.49 or -0.69%. Trading prices for the Invesco QQQ Trust are $305.50, down $1.94 or -0.63%.

The Federal Reserve Chairman Jerome Powell's succinct and direct statements in Jackson Hole, Wyoming, on Friday seemed to put an end to optimism that the central bank would reverse its aggressive pace of rate rises in the coming months, which led to a significant decline in the technology-driven index.

Moving NASDAQ Composite Stocks

After exceeding expectations in the most recent quarter's top and bottom lines, Pinduoduo increased by 18%. The massive Chinese e-commerce company said its performance were aided by a rebound in customer confidence.

The price of Netflix's ad tier might range from $7 to $9 per month, according to a Bloomberg story, which has led to a 1.1% increase in the company's stock price.

Following the announcement that U.S. merchants on its site would need to validate their bank accounts or provide their login and password to fintech company Plaid, Etsy saw a 1.2% increase in its stock price.

The near future

As Friday's U.S. Non-Farm Payrolls data and the beginning of a lengthy U.S. holiday weekend approach, volume is very low. Volume may continue to decline as the majority of the main players are anticipated to begin taking a back seat, creating the prospect of very violent price fluctuations that have little bearing on the short-term makeup of the market.

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