From InvestingCube · Eno Eteng (DipTA, MSTA) · · 50s
NASDAQ 100 Reacts to Cooler Inflation Data
Core PCE cools as Nasdaq 100 stays in consolidation.
In brief
Core PCE cools as Nasdaq 100 stays in consolidation. The Nasdaq 100 index remains within consolidation after cooler Core PCE inflation data and stronger GDP growth. Originally reported by InvestingCube.
Core PCE cools
The Core PCE Price Index rose 0.2% month-on-month versus 0.3% expected.
“August Core PCE Price Index rose 0.2% month-on-month versus 0.3% expected”
GDP growth stronger
The US economy grew 2.2% year-on-year versus 1.5% consensus.
“The final US Q2 GDP reading showed the US economy grew 2.2% YoY”
US10Y yield choppy
The US 10-year Treasury yield hit 5.293% intraday before falling to 5.22%.
“The 10-year Treasury yield hit 5.293% intraday”
Nasdaq 100 consolidation
The Nasdaq 100 index remains within 30175 to 30682 with a bullish bias.
“Even though the Nasdaq 100 has responded positively to today’s US data, it has not seen a major upside move and still remains in the consolidation band between 30175 and 30682”
US10Y yield constrains tech stocks
Higher US10Y yields reduce present value of tech stocks’ future earnings.
“A higher 10-year yield translates to higher discount rates, which reduce the present value of these stocks’ future earnings”
Nasdaq 100 trading scenarios
Bullish: US10Y yield drops below 5.20% for break above 30682.
“Bullish: US10Y yield drops below 5.20%: This would signal market satisfaction that the cooler PCE data proves inflation is cooling sufficiently”
Here's the gist
The Nasdaq 100 index remains within consolidation after cooler Core PCE inflation data and stronger GDP growth.
