Nasdaq 100 rebounds despite accelerating core inflation
The New York Stock Exchange started a rebound yesterday after a difficult start to the session marked by higher than expected inflation figures which indicate more persistent inflation and therefore do not provide any reassurance on the pace of rise in interest rates. the Fed.
The consumer price index (CPI) rose twice as much as expected, by 0.4% in September, after rising 0.1% in August and the core CPI, which excludes food and l energy, rose more than expected by 0.6% in September after having already increased by 0.6% in August. On an annual basis, core inflation hit a new high of 6.6% in September, leaving little room for a slowdown in the pace of Fed rate hikes. As a result, operators have raised their expectations for monetary tightening and are now anticipating two further rate hikes of 75 basis points by the end of the year and a terminal rate of 4.75-5.00% in 2023. against 4.50-4.75% previously.
Nevertheless, this did not prevent the markets from rebounding on technical grounds. The S&P 500 fell below 3,500 points, which marked a 50% retracement of the pandemic rally, before recovering. This rebound, which saw the index return above 3,600, was probably helped by hedging of short positions.
The rebound was driven by technology stocks, particularly semiconductors and Apple (+3.4%). Apple was down 2.9% at its session low and the PHLX semiconductor index was down 4.9% before ending up 3.4% and 2.9% respectively. Taiwan Semiconductor Manufacturing Co. (+3.9%) was one of the best performers in the sector after posting favorable quarterly results and forecasts.
Further support for the market was strength in the financial services sector (+4.1%), which ended the day at the top of the charts. BlackRock (+6.6%) was one of the stars of the sector after publishing mixed results this morning. Another notable leader was JP Morgan Chase (+5.6%), which will report results before Friday’s open.
Daily price chart of the Nasdaq 100 (CFD US Tech 100) – key levels