Nasdaq 100 trading idea: Tech falls back as long rates rise

The Nasdaq 100 relapses with the continued rise in long rates

Tech stocks look set to return to the downside after a major rebound of almost 20% in a matter of weeks. Nasdaq 100 stocks ended in the red for the second straight session as higher bond yields put pressure. The 10-year yield hit a new multi-month high at 2.60% on Wednesday, putting pressure on higher valuations.

The Nasdaq 100 ended down more than 2% on Wednesday and could continue to be under pressure, with the surge in long rates showing no weakness. The many speeches by members of the Fed in the media this Thursday will be closely followed by investors, in particular that of the governor of the New York Fed, John Williams. After last night’s Fed minutes, they could give more details on their monetary tightening ambitions for the coming months.

Last night’s minutes underscored members’ willingness to raise rates repeatedly in upcoming meetings and begin to shrink the size of the Fed’s balance sheet by $90 billion a month.

Nasdaq 100 4 hour chart – key levels

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