Data and statements are what set the pace and tempo on Wall Street right now. And in the case of the NASDAQ 100, also the bond market, not because it does not affect -which it does and a lot- the rest of the indicators, but because the levels of 4% in the US 10-year bond in its profitability is cyanide for the indicator of innovation and technology par excellence in the virtual trading floor of Times Square.
These growing stocks saw their worst day of the last year on September 30, marking annual lows, in a downward spiral that has led them to lose, up to those levels, the smallest amounts in the year from maximums, almost 30% of your tour. And what can be worse. Despite the fact that two of the three sessions of this recently started October have been positive for Nasdaq, the truth is that analysts do not trust the progression as a rebound trend.
From UBS they consider that this type of amount increases, which have added more than 420 points from the lows of last week to the indicator in the first trading days of this month, may continue to occur. Rebounds like those of the summer, but whose continuity is still in question. At the moment it remains in doubt with the cuts, although moderate, of the last two sessions for the indicator.
And it is that the pattern continues to be set by the Fed, which does not meet until the beginning of next month, with which, like investors, what it will do is collect data to take the pulse of the economy, and yes, its actions To date, with the quasi-vertical rise in rates in the United States, it is having the expected effects of crushing the stratospheric levels of inflation. Although we will know the minutes of the last session next week.
And until that happens, a real bias change in prices that leads the Federal Reserve to modify its aggressive policy of increasing rates, there will be no peace for the markets. At least, that is the most generalized vision that focuses on the most punished: a Nasdaq whose negative figures say it all.
It is only necessary to highlight those falls in September of 10.5% and the quarterly falls of 4.1%, thanks to a summer of recovery. By the way, consecutive quarterly declines occurring for the first time on the Nasdaq since 2009.
In fact, in its stock chart we see that the Nasdaq 100 maintains its positive balance in the last week, with advances of 3% due to the amount of the rebound, but the cuts have already arrived in the last month and exceed 6.6%. Decreases that fell by 5% in the quarter, to become annual falls of 29.5%.
We see the true reflection in the march of its values: in the closest thing those falls of Tesla that came to exceed 13% last Tuesday in full vortex of recovery due to those figures, which were published by the covert company last Sunday , and that reflected that its production did not reach the levels expected in the third quarter and that the market was already discounting to approach BMW’s production throughout the year.
If we extend our view to the entire year, the picture is bleak, because among the 100 stocks that make it up, 12 of them show declines of more than 50% so far this year. Companies like Netflix, with 60% down, Meta with more than 58% cuts, Zoom with 57%, the chip companies Nvidia and AMD that give up respectively over 55% and 52% and with PayPal that cuts 50%. An example of what needs to be improved by looking at the Fed in the United States.