The NASDAQ 100 has been positive on Friday, as oil pulls back, and perhaps just as important, the 10-Year Yield in America has pulled back from the 5% level.
NASDAQ 100
The NASDAQ 100 is up a little over 1% during the trading session midday on Friday, despite the fact that we had seen month-over-month CPI numbers in the core CPI reading come out hotter than anticipated. That being said, typically speaking, hotter-than-anticipated CPI numbers would hurt the NASDAQ 100, as it increases the odds of the Federal Reserve hiking, but that was pretty much priced into the markets already.
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Oil is dropping, and that seems to be a big driver as well, as it is down about 3%. It is also worth noting that the 10-year yield has retreated a bit from the potentially headline-making 5% level. Ultimately, there are a lot of different stocks moving right now, with the biggest loser actually being Adobe. However, we have big gains by Oracle, NVIDIA, Intel, and Qualcomm moving things in the other direction.
We are currently hanging around the 50-day EMA
It is possible that the market is now accepting the interest rate hike on Wednesday. Ultimately, though, the real question is whether or not this is just one hike coming out of the Federal Reserve, or if it is the beginning of another sequence of hikes. The secondary scenario in that question would be much more problematic for the NASDAQ.
Right now, it is falling oil that people are willing to pay attention to, along with the fact that interest rates are pulling back from that huge 5% level. That has allowed the market to rebound and take out almost all of the losses from the previous session. This is a good sign, as it looks like the market is still willing to at least stay in the same region.
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