The market has been volatile over the last few days, with the major indexes currently in negative territory for the week. The tech-heavy index Nasdaq 100 has been battered by investors’ fears that rising rates will hamper future earnings.
Regardless, the show continues. Amazon and Apple are taking center stage as they are set to release their quarterly earnings after the bell on Thursday.
Nasdaq has only recently reverted to a technical ‘bear market’ (a more than 20% drop from all-time highs) and is hovering barely above a 13-month range floor. A break below 13,000 will almost certainly rattle the holdout bulls’ certainty.
Money managers say trading has been light and prone to whipsaw moves in both directions due to a lack of information into how higher rates will ripple through the economy.
When Apple and Amazon report quarterly earnings after the closing bell, investors will get a peek of how decades of rising inflation—and the Fed’s response—are influencing consumer mood.
Other Themes to Factor In
The earnings docket shouldn’t be the only major issue that investors should be keeping an eye on. The fallout from Russia’s invasion of Ukraine shouldn’t be kept in the back burner especially after reports of artillery strikes across the border of Moldova. Russia reported jobless data at 4.1 percent and the RCB is anticipating a rate hike on Friday.
The monetary policy will take into account Bank of Japan’s dovish stance to quell the Yen’s collapse, Eurozone consumer inflation, and US GDP.
*OspreyFX would like to state that traders should research extensively before following any information given hereby. Any assumptions made in this article are provided solely for entertainment purposes and not for traders to guide or alter their positions. Please read our Terms & Conditions and Risk Disclosure for more information.
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