CFD Indices – Dow and S&P 500 Slip, Nasdaq Holds Steady Amid Rate Concerns and Tech Earnings Anticipation

Market News

  • The Dow and S&P 500 ended slightly lower on Tuesday as investors stayed worried the Federal Reserve will keep interest rates higher for longer and as banks shares eased, while the Nasdaq Composite finished barely in the green.
  • The benchmark 10-year Treasury yield hit almost 16-year highs overnight on the view the Fed could keep rates higher for longer. Higher borrowing costs can slow spending by businesses and consumers.
  • Investors also eagerly awaited results and a forecast from chip heavyweight Nvidia due after the bell on Wednesday. Nvidia surprised investors with its strong forecast in May, fueling a rally in its own and other tech stocks amid artificial intelligence hopes.

Market Views

  • Asia-Pacific markets are higher on Wednesday morning as investors assess private business activity surveys from Australia and Japan, as well as inflation figures from Singapore. Hang Seng index rose 61 points and Nikkei 225 index gained 63 points.
  • Data on Wednesday showed Japan’s factory activity shrank for a third straight month in August, offering the first glimpse into the health of global manufacturing this month. U.S. will also report its flash PMI readings on Wednesday, which is likely to show the factory sector remained in contraction.



Dow Jones Index
(CFD Symbol: US30)

Trend:

Recommendation:

Last: 34,369

Target price:

Protective stop:

Outlook
This index could have formed a temporary bottom at 34,237. Price is being supported by this bottom for a third occasions. Stochastic is at the oversold zone. We could see price having a short rebound to its 20EMA at 34,820.

Trading Idea
Wait for better trading idea


Hang Seng Index
(CFD Symbol: HK50)

Trend:

Recommendation:

Last: 17,874

Target price:

Protective stop:

Outlook
Price could have formed a bottom at 17,554. It is forming a potential morning doji star reversal candlestick pattern. Stochastic is at the oversold region and MACD is moving higher. We are likely to see price rebounding to 18,520.

Trading Idea
Buy 17,740 for 18,500 with a stop below 17,580


Nasdaq 100 Index
(CFD Symbol: USTec)


Trend:

Recommendation:

Last: 14,959

Target price:

Protective stop:

Outlook
Price rebounded after being supported by its previous low support zone. It has to penetrate and close above the 20EMA resistance point for more upside. Stochastic is rising from the oversold zone and there is a bullish MACD crossover.


Trading Idea
Buy 14,750 for 15,360 with a stop below 14,530


FTSE 100 Index
(CFD Symbol: UK100)

Trend:

Recommendation:


Last: 7282

Target price:

Protective stop:

Outlook
This index rebounded after being supported by its previous low support zone. Stochastic is at the oversold zone and MACD is moving higher. We are likely to see price rebounding from this support zone to test 7410.


Trading Idea
Buy 7250 for 7400 with a stop below 7200

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