Indices

NAS100 Subdued after Strong Factory Activity

Nikos Tzabouras Written by Nikos Tzabouras
  • NAS100
    (${instrument.percentChange}%)

NAS100 Analysis

Wall Street did not mind the inflation persistence as indicated by Friday's PCE update, but was spooked by yesterday's unexpectedly strong ISM Manufacturing PMI, in another manifestation of the "good news is bad news" approach. Factory activity expanded for the first time since September 2022, providing another signal of a robust economy.

CME's FedWatch Tool still assigns the highest probability to 75 basis points of cuts to begin in June, but conviction diminished and chances of a shallower path increased after the PMI report [1]. The Fed has no reason to rush cuts with sticky inflation, strong economy and robust labor market.

NAS100 is cautious as result and there is scope for sub EMA200 moves that would pause the bullish momentum, but the downside appears well protected, starting with the rising daily Ichimoku Cloud. Despite its conservative approach to removing monetary restraint, the Fed maintained the projection that points to three rate cuts this year [2]. This continues to support NAS100, which can push for higher highs towards the 19,000 mark.

Trade the News: View our Economic Calendar

Learn More

Nikos Tzabouras

Senior Financial Editorial Writer

Nikos Tzabouras is a graduate of the Department of International & European Economic Studies at the Athens University of Economics and Business. He has a long time presence at FXCM, as he joined the company in 2011. He has served from multiple positions, but specializes in financial market analysis and commentary.

With his educational background in international relations, he emphasizes not only on Technical Analysis but also in Fundamental Analysis and Geopolitics – which have been having increasing impact on financial markets. He has longtime experience in market analysis and as a host of educational trading courses via online and in-person sessions and conferences.

References

1

Retrieved 02 Apr 2024 https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html

2

Retrieved 30 Apr 2024 https://www.federalreserve.gov/monetarypolicy/fomcpresconf20240320.htm

${getInstrumentData.name} / ${getInstrumentData.ticker} /

Exchange: ${getInstrumentData.exchange}

${getInstrumentData.bid} ${getInstrumentData.divCcy} ${getInstrumentData.priceChange} (${getInstrumentData.percentChange}%) ${getInstrumentData.priceChange} (${getInstrumentData.percentChange}%)

${getInstrumentData.oneYearLow} 52/wk Range ${getInstrumentData.oneYearHigh}
Learn More
Disclosure

Any opinions, news, research, analyses, prices, other information, or links to third-party sites contained on this website are provided on an "as-is" basis, as general market commentary and do not constitute investment advice. The market commentary has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and it is therefore not subject to any prohibition on dealing ahead of dissemination. Although this commentary is not produced by an independent source, FXCM takes all sufficient steps to eliminate or prevent any conflicts of interests arising out of the production and dissemination of this communication. The employees of FXCM commit to acting in the clients' best interests and represent their views without misleading, deceiving, or otherwise impairing the clients' ability to make informed investment decisions. For more information about the FXCM's internal organizational and administrative arrangements for the prevention of conflicts, please refer to the Firms' Managing Conflicts Policy. Please ensure that you read and understand our Full Disclaimer and Liability provision concerning the foregoing Information, which can be accessed here.

Past Performance: Past Performance is not an indicator of future results.

Spreads Widget: When static spreads are displayed, the figures reflect a time-stamped snapshot as of when the market closes. Spreads are variable and are subject to delay. Single Share prices are subject to a 15 minute delay. The spread figures are for informational purposes only. FXCM is not liable for errors, omissions or delays, or for actions relying on this information.