Nasdaq
The NASDAQ index is currently down 4.31%, that is is worst day since September 13, 2022 when the US. stock markets experienced significant declines, due to higher-than-expected inflation data. On that day, the Consumer Price Index (CPI) report revealed that inflation had not slowed as anticipated, leading investors to anticipate more aggressive interest rate hikes from the Federal Reserve. Core CPI, which strips out volatile food and energy prices, increased more than expected, rising to 6.3% from 5.9% on that day.
The Dow Jones Industrial Average on that day fell 1,276 points (3.94%), the S&P 500 dropped 4.32%, and the Nasdaq Composite decreased by 5.16%.
The dynamics for the drop today centers around expectations of slower growth in the US and the potential for higher inflation due to increased tariffs.
The NASDAQ index is approaching its 38.2% retracement of the move higher from the October 2023 swing low. That low was the last time the price of the NASDAQ index closedbelow its 200 day moving average. The 38.2% retracement comes in at 17284.34. The current price is trading at 17420, with a low price today of 17395.09.
The overall decline from the December high is approaching 14%. A decline to the 38.2% target would imply a fall of around 14.5%.