Global markets are facing extended losses, with the Nikkei plummeting by 12% in Japan, marking its largest two-day decline in history. The Nasdaq 100 has entered correction territory, with concerns about a global recession, profit-taking, and geopolitical tensions contributing to the selloff.
In pre-market trading, NVIDIA (NASDAQ:) is down approximately 8.8%, adding to the index’s decline. Despite the economic slowdown anticipated by markets, panic selling and profit-taking are also driving factors behind the selloff. Safe havens like gold have seen gains, while currencies like the and the are benefiting from rising safe-haven appeal.
Goldman Sachs has raised recession odds by 10 percentage points to 25%, indicating potential rate cuts by the Federal Reserve. Geopolitical tensions in the Middle East, along with the Australian government raising terrorism threat levels, are adding to market uncertainty.
US Earnings and Data Releases
The ISM data release will provide insight into the US service sector employment numbers. Disney (NYSE:) and Caterpillar (NYSE:) earnings reports will also impact market moves this week, particularly for consumer and manufacturing sectors.
Technical Analysis: Nasdaq 100
The Nasdaq 100 is currently in correction territory, testing key support levels. A continued selloff could see the index revisiting lower support levels, while a rebound may push it towards resistance levels. The 200-day moving average is currently a critical level to watch for potential price movements.
Support: 17300, 17000
Resistance: 18416, 19000
Fact of the Day: Berkshire Hathaway (NYSE:) has reduced its stake in Apple (NASDAQ:) by 55.8% since the end of 2023.
Source: TradingView