1. Home
  2. /News
  3. /NASDAQ 100 Price Forecast: Gains to $19,200 Amid Fed Meeting and Trade Concerns

NASDAQ 100 Price Forecast: Gains to $19,200 Amid Fed Meeting and Trade Concerns

On Wednesday, Asian stock markets largely declined as investors awaited additional information on inflation trends and decisions

Arslan Butt•Wednesday, June 12, 2024•3 min read
On Wednesday, Asian stock markets largely declined as investors awaited additional information on inflation trends and decisions from the Federal Reserve.
Compounding these concerns, new reports indicated a possible escalation in U.S. trade restrictions against China, negatively impacting investor sentiment. Despite the S&P 500 and NASDAQ Composite hitting record highs, primarily boosted by major tech stocks, U.S. futures remained relatively stagnant in Asian trading.

Heightened Trade Concerns Between the U.S. and China

The decline in Chinese markets followed reports suggesting the U.S. might expand trade sanctions on semiconductor exports to Russia, potentially affecting Chinese and Hong Kong firms suspected of aiding Moscow.

This development fuels worries about deteriorating commercial relations between the world’s top economic powers. Earlier in 2024, the imposition of increased U.S. import tariffs on key Chinese sectors had already soured relations further.

Ambiguous Signals from Chinese Economic Indicators

The economic indicators from China were mixed: the Producer Price Index (PPI) saw its slowest decline in 15 months this May, while Consumer Price Index (CPI) growth was below anticipated levels, signalling a tepid economic recovery. This conflicting data contributed to the uncertainty affecting the Chinese markets.
Other regional markets also suffered losses. Japan’s Nikkei 225 and TOPIX indices each dropped by about 0.8% after a May PPI report suggested inflation was heating up more than expected, just before a Bank of Japan policy meeting expected to see further tightening measures. This aligns with the BoJ’s view that inflation pressures will prompt further rate hikes.

Critical U.S. Economic Data and Federal Reserve Meeting

 Market sentiment remains fragile in anticipation of the Federal Reserve’s meeting conclusion on Wednesday, with the central bank predicted to maintain the current interest rate.

The focus is on the Fed’s inflation assessment and future rate-cut plans. Additionally, imminent CPI data, set to confirm persisting inflation for May, could discourage the Fed from initiating rate reductions.

Regional Market Dynamics

  • The ASX 200 in Australia declined by 0.5%, while South Korea’s KOSPI index bucked the trend by gaining 0.3%, supported by strengths in the semiconductor sector.
  • The Indian Nifty 50 index looked to open flat, maintaining stability despite recent election surprises and ongoing economic reform efforts under Prime Minister Modi’s administration.
The sensitivity of the NASDAQ 100 to these international economic and geopolitical developments is significant. Understanding these dynamics is crucial for investors trying to navigate the complex global market landscape.

Essential Insights:

  • U.S. scrutiny impacts Chinese stocks, with significant trade and economic implications.
  • Japan’s stock market reacts to inflation data ahead of the central bank meeting.
  • Upcoming Federal Reserve decision and CPI data critical for upcoming market movements.
This professional overview offers a detailed analysis of the factors affecting the NASDAQ 100, providing essential insights for informed investment decisions amidst these volatile conditions.

NASDAQ 100 Price Forecast

The NASDAQ today registered a notable gain, rising 0.71% to reach 19,210.18. This movement places the index well above its pivot point at $19,075.00, signaling potential bullish momentum.
Immediate resistance for the index is now seen at $19,231.79, followed by further resistance levels at $19,359.40 and $19,439.54. A sustained move above these levels could confirm continued upward momentum.
Conversely, the immediate support is established at $18,861.50, with subsequent support levels at $18,736.53 and $18,630.91. A breach below the pivot point could trigger a sharp selling trend, given the index’s current position.
Technical indicators bolster the bullish outlook; the Relative Strength Index (RSI) stands at 69, indicating a strong buying interest. Additionally, the index has surpassed the 50-day Exponential Moving Average (EMA) at 18,617.84, which supports the uptrend.
Notably, the NASDAQ has demonstrated a double top breakout at 19,000, which traditionally suggests a continuation of the buying trend. With a solid position above $19,075.00, the NASDAQ shows bullish potential, but traders should watch for any movement below this crucial level as it could lead to a significant pullback.

 

ABOUT THE AUTHOR See More
Arslan Butt
Lead Markets Analyst – Multi-Asset (FX, Commodities, Crypto)
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

Related Articles

img
Stock Market Falls Further after Trump’s Budget Bill Moves to Senate
3 hours ago
img
S&P 500 Winning Streak Is Over as Stock Market Feels Pressure
2 days ago
img
Canada's TSX Pushes to Records Despite Higher CPI, Dow DJIA Slips on Bond Jitters
3 days ago

HFM

Doo Prime

XM

Best Forex Brokers

trend BTC 0.0000
trend ETH 0.0000
trend EUR/USD 0.0000
trend DOW 0.0000
Alerts Rates Calendar Signals