Nasdaq 100 decline as tech stocks slide and PCE data impacts market sentiment.

by MarketNewsData

Market Update: Nasdaq 100 Decline and Fed’s Inflation Gauge

  • On Friday, the Nasdaq 100 experienced a decline after reaching a record of 24,068.50 earlier this month. The index tested support near 23,035 last week. Marvell (MRVL) Drops 16% after earnings.
  • The 50-day simple moving average (SMA) at 23,223 is providing short-term support, while the longer-term 200-day SMA is significantly lower at 21,705, indicating a sustained bullish trend.
  • The July core PCE reading increased by 2.9% year-over-year, aligning with expectations but showing a rise from the previous month. This data keeps September rate cut hopes alive but highlights ongoing inflation pressures.
  • Morgan Stanley’s Ellen Zentner noted that the Federal Reserve may refrain from aggressive easing unless labor market weakness becomes more evident. The upcoming non-farm payrolls report could significantly influence near-term rate expectations.Overall, the market reflects caution amid inflation concerns and potential shifts in monetary policy.

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