Nasdaq Composite: Significant slowdown in the pace of consumer price inflation

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(News Bulletin 247) – Pre-opening data suggests a strong start to the session on the Nasdaq Composite, with the support of the latest inflation figures showing a significant slowdown (even more than expected) in the rise in prices. Yesterday, the flagship index of technology stocks on the American side lost 2.48% to 10,353 points.

In details, prices, in their broadest sense, including energy and food rose by 7.7% at an annualized rate, against 8.2% last month, and 7.9% expected, according to the latest figures from the Census Bureau, in seasonally adjusted data. Excluding volatile elements (food and energy), prices rose by 6.3%.

What bring a certain relief on the markets, suggesting a relative softening of the tone of the Fed for its next monetary maturities, at least a slowdown in the pace of tightening of the tap.

Regarding the mid-term elections, another highlight of the week, at this stage of the count, the Republicans have a slight lead over the Democrats (49 seats against 48) in the Senate. Final results for the powerful upper chamber will not be known until next month. Georgia will indeed have to vote again. Note that in the event of a 50-50 tie, the Democrats would retain control in the Senate thanks to the vote of Vice President Kamala Harris. The Republicans, on the other hand, have a clear head start in the House of Representatives, without the announced tidal wave having taken place.

KEY GRAPHIC ELEMENTS

For the time being, a return towards the 50-day moving average (in orange) is the preferred option. Only an overshoot of the latter, with validation by volatility, sectoral federation and volumes, would give credit to a lasting reversal of polarity.

FORECAST

Considering the key chart factors we have mentioned, our opinion is positive on the Nasdaq Composite index in the short term.

This bullish scenario is valid as long as the Nasdaq Composite index quotes above the support at 10200.00 points.

CHART IN DAILY DATA

©2022 News Bulletin 247

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