(News Bulletin 247) – The Nasdaq Composite index symbolically managed to close Thursday’s session in the green (+0.21% to 12,965 points), in a level of participation however thin, at the trough of August, and between two important monetary meetings (Minutes and Jackson Hole Symposium). On this last point, it will be a great opportunity, particularly on Friday with J. Powell’s speech, to refine the estimates of the rise in Fed Funds, 50 or 75 bps. The 50 scenario would make it possible to soften the slope of the monetary tightening process, and therefore to support the rating of growth stocks, a family whose index that interests us here is richly represented. This question of the brutality of the rate of ascent is essential.
St. Louis Fed President James Bullard told the Wall Street Journal on Thursday that he was in favor of raising rates by 75 basis points in September. Neel Kashakari, who chairs the Federal Reserve Bank of Minneapolis, not known especially for his hawkish character, even supported the scenario of a range of key rates to 4% this year and a continuation in 2023 in the direction of 4.5 %.
Investors are also in the analysis of the challenges of the new Climate law signed by Joe Biden, and which is passing the final stages of its legislative journey. It is “the most significant federal climate action legislation in U.S. history,” in the sense of Jennifer Boscardin-Ching, Client Portfolio Manager at Pictet Asset Management, who details a package of “369 billion dollars for energy and climate programs over the next ten years.”
“Expanding renewable energy tax credits will continue to support the large-scale growth of the renewable energy sector in the United States, encouraging the acceleration of the transition to renewable energy” while “large emitters of greenhouse gases will be penalized through a levy on excessive methane emissions from oil and gas facilities that exceed a certain threshold. This will increase the competitiveness of the renewable energy industry against fossil fuels.”
Active files in the renewable energy sector, which can be found within the Composite, have done well in recent weeks, such as Plug Power, SunRun, Beam Global, First Solar, or Canadian Solar. .
The Fed is meeting its Monetary Policy Committee on September 20 and 21.
No sharp benchmark is on the statistical agenda this Friday.
KEY GRAPHIC ELEMENTS
At this stage of the rise in prices, since June 17, a breathing phase is envisaged until against the 20-day moving average (in dark blue), whose crossing with its 50-day counterpart (in orange), in a significant angle, released short-term upside potential. In the immediate future, the doji traced on Tuesday 16th invites you to momentarily slow down. Neutral opinion offered immediately on the flagship index of technology stocks on the American side.
FORECAST
In view of the key chart factors that we have identified, our opinion is neutral on the Nasdaq Composite index in the short term.
We will take care to note that a crossing of 13020.00 points would revive the tension in the purchase. While a break of 12140.00 points would relaunch the selling pressure.
CHART IN DAILY DATA
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