There is now joy in US stocks, despite what has been more favorable earnings. The idea of a slowing economy is just not sitting well despite the fact that the economy is showing fairly decent strength (see durable goods orders and GDP but is it a last hoorah?). Also, the fear of rates rising remains a real threat, and that idea is not solely dependent on the Fed, but also global investor demand (demand from overseas investors in the five-year note auction yesterday was horrible), higher government debt levels as fiscal spending is out of control, etc. PS lower rates today are not helping.
Looking at the major indices:
- Dow industrial average is down -33 pointer or -0.10% at 33003.27
- S&P index is down -21.4 points are -0.51% at 4165.16
- NASDAQ index is down -125 points or -0.99% at 12690
Looking at the NASDAQ index, it is falling below its 200-day moving average for the 1st time since March 15. The price is also breaking below its 38.2% retracement of the move up from the October 13, 2022 low.
NASDAQ index falls below its 200 day MA & 38.2% retracement