- US equity indices bounced sharply on Wednesday.
- Inflationary pressure rises in Europe, but yields fall.
- Powell goes into blackout but signals a 25 bps hike is set in stone.
Equity markets recovered recent ground on Wednesday as the falling yield environment finally gave equity investors some hope. All three major US indices finished up just under 2% with the S&P 500 (SPY) being the biggest gainer on the day. The Nasdaq (QQQ) finished Wednesday up 1.68%. The recovery was broad-based with over 400 of the S&P 500 stocks finishing in the green and all sectors closing higher. The rally was a combination of optimism from the Fed chairman's more doveish comments and some optimism ahead of more Russia-Ukraine talks. Well, hope rather than optimism as the conflict shows no signs of abating.
Nasdaq (QQQ) Stock News
Big tech names and semiconductors held the Nasdaq on Wednesday. Apple (AAPL), Microsoft (MSFT), Tesla (TSLA) all rose nearly 2%, while AMD and Nvidia (NVDA) rose 3% and 4%, respectively. The situation was helped by falling US yields, especially the 2-year, which was spurred by doveish commentary from Fed Chair Powell.
Nasdaq (QQQ) Stock Forecast
$348.50 is our short-term pivot. Above and more gains are likely to test the 200-day moving average at $367. However prolonged failure to break this level will see a move back below $330. Key support at $316 remains in place for now. That is a very strong level, not only due to the lows from May 2021 but also as a huge volume-based level. The Nasdaq (QQQ) remains fragile with the Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD) both still bearish.
Nasdaq (QQQ) chart, daily
In the short term, look to $348 as the pivot. Failure will see the lower end of the range tested at $338. A break of $338 will likely see a sharp move lower toward $326.
Nasdaq (QQQ) chart, 15-minute
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