Key Takeaways

  • The Nasdaq closed Friday lower by 0.1%, averaging a total loss of 3.6% over the course of the last trading week.
  • The S&P 500 and the Dow Jones were also in decline, having fallen a weekly total of 2.9% and 1.9% respectively, by close of session on Friday.

The Nasdaq 100 slipped 0.1% Friday, extending losses to 3.6% throughout the week. The tech-heavy index was joined in the red by its two peers. The S&P 500 tumbled 2.9% for the week and the Dow Jones Industrial Average dropped 1.9% for the same time span.

Early on Monday, futures contracts tied to the Nasdaq remained in negative territory by about 0.2%. The figure is pointing to more losses at the opening bell in New York later today.

Interest Rates Remain Unchanged

Investors were taken by surprise last Wednesday when Federal Reserve Chairman Jay Powell delivered a speech confirming that, for now, interest rates remain unchanged. The Fed’s message was underscored by its indication of a hawkish response, or an aggressive approach to inflation, of raising interest rates “further if appropriate” by the end of the year.

The “higher for longer” concept resulted in the downturn of the three major indices, sending them on a downward trend that continued until market close ahead of the weekend.

The Nasdaq in particular bore the brunt of this sentiment shift, closing deep in the red on Friday. The Nasdaq 100 is primarily made up of tech companies that are expected to experience growth and expansion. So, with interest rates staying higher for longer, tech companies will find funding this growth to not only be more difficult but also less attractive.

What Can Traders Do About It

The week ahead on our calendars is pretty light in terms of major economic events. As a trader, this can give you the opportunity to step back and reassess your long-term goals.

It could be wise to take this time to delve deeper into your technical analysis and study the trends and patterns. The market as we know it will always have calm and turbulent moments; it’s important to remain vigilant and complete your due diligence.