Macro update
Wall Street declines:
US equities sold off sharply, with the S&P 500 and Nasdaq 100 breaking below their 50-day moving averages for the first time since April.
Nvidia in the spotlight:
Nvidia shares eased ahead of Wednesday’s earnings, as stretched artificial intelligence (AI) valuations came under scrutiny following reductions in holdings by prominent investors.
Jobs data now key:
With the US government shutdown over, traders turned their attention to Thursday’s delayed September employment report.
Tech downgrades drag:
Dell and Hewlett Packard Enterprise dropped sharply after broker downgrades, while Alphabet gained more than 3% after Berkshire Hathaway disclosed a new position.
Asia follows Wall Street lower:
Regional equities weakened, with Japan’s Nikkei 225 sliding 3.2% as chipmakers led the decline.
Japan policy concerns rise:
A weakening yen and expectations of a sizeable fiscal stimulus pushed long-dated Japanese government bond yields to their highest levels since 1999.
Nasdaq 100 drops like a stone
The Nasdaq 100’s fall through Friday’s low doesn’t bode well for the bulls with the late September and October lows at 24,257-to-24,187 being on the cards.
Were this support area to give way on a daily chart closing basis, a medium-term top may be in the process of forming.
Minor resistance sits between the 22 October and 7 November lows at 24,604-to-24,652 and may also be seen along the 55-day simple moving average (SMA) at 24,916.
Nasdaq 100 daily candlestick chart