NAS100 Upbeat after CPI Update, with Arm Set to Start Trading
NAS100 Analysis
Yesterday's US CPI report showed that headline inflation accelerated 0.6% in August and the highest level in over a year, driven by higher energy prices. It also rose 3.7% y/y on a yearly basis, in the biggest increase since May. Excluding food and energy prices, inflation steadied at 4.3% y/y.
This is the last major data set ahead of next week's Fed policy meeting. Markets widely anticipate a hold at current 5.25-5.50% and see this as the terminal rate, but there is less conviction around the latter. Inflation is still high, the labor market tight and the economy strong, which sustain the higher-for-longer narrative.
NAS100 comes from a losing month, as the Fed has kept the door open to more tightening and continues to face difficulties in September. It managed to look past Wednesday's hot inflation report though and closed the day in the green.
Markets now turn to the Arm IPO, which is the hottest initial public offering of the year. The British chip designer is looking to ride the AI wave with the timing of its public listing. It announced that it will begin trading today on Nasdaq Global Select Market under the ticker "ARM", at a price of $51.00 and the top of its range. [1]
NAS100 is upbeat today, ahead of the Arm debut and retains its upside bias, holding above the EMA200. This keeps the 2023 highs (15,946) in its crosshairs, but will need fresh impetus for tacking them out.
On the other hand, the higher-for longer narrative continues to create headwinds and NAS100 struggles at the upper band of the daily Ichimoku Cloud. As such, there is risk of renewed pullback, but the downside looks were protected from 14,716 below.
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
| Retrieved 10 May 2024 https://www.arm.com/company/news/2023/09/arm-announces-pricing-of-initial-public-offering |
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