NASDAQ 100 Forecast: Gets Hammered on Thursday

Remember that tech stocks love low interest rates, mainly because most of the „financial darlings” in the industry are even profitable and need some form of financing or easy money terms to continue to raise venture capital. , The NASDAQ 100 continues to decline quite significantly in Thursday’s session as we see tech stocks take a full hit. The last one up is Meta, or what most people still call Facebook, which at one point during the night session was down about 20%. While Zuckerberg continues to harp on the topic of the metaverse, the rest of the world doesn’t seem all that interested. Advertisement Stock Markets Crash Again Buy Dips Now! Plus, you have the collision of Elon Musk taking over Twitter, who knows what that will bring? In other words, technology is crap under the best of circumstances, and now you have tighter monetary policy, which will almost certainly add more pain to this area of ​​the financial world. Remember that tech stocks love low interest rates, mainly because most of the „financial darlings” of the industry are even profitable and need some form of financing or easy money terms to keep getting venture capital. The NASDAQ 100 is likely to lose ground As interest rates tighten, it will be very difficult to get venture capital funding, which means many of these companies would have to make a profit. While some of the bigger ones are doing well, the reality is that Google and Facebook have to worry about fewer people spending money on ads, which is a very bad sign for the economy. If that is the case, and it has been so brutally one-way for most of the session, expect the NASDAQ 100 to fall back to the 11,000 level in the next day or two. Next week we have the FOMC announcement and the Fed is widely expected to raise interest rates by 75 basis points. Some on Wall Street think they’ll only do 50, but that’s a little out of the ordinary and the Fed has done nothing to make you believe that. While people are still trying to figure out what they want to do with themselves, there will be instability. However, this is a market that I think has been in a bad slump, and while this latest rally has been impressive, it’s just a bear market rally that is selling enough to these patients to wait for an opportunity.

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