Tech sell-off weighs on markets as Dollar regains momentum
Important news this week
- Fri, 23rd, various DE/EU/UK/US Purchasing Manager Index.
Tech sell-off weighs on markets as Dollar regains momentum
Equity markets remain under pressure, with the S&P 500 trading around 7,670 and the outlook for the remainder of the week looking increasingly challenging. The Nasdaq is weaker still, having fallen below its 50-day moving average and turning lower after failing to break above this key technical level. The index has now moved below 29,050, reflecting persistent concerns surrounding the technology sector. In contrast, blue-chip stocks are showing resilience and moving higher, suggesting that selling pressure is not affecting all segments of the equity market equally.
Market talk
The broader market environment remains fragile as the US Dollar begins to recover. The DXY is edging higher, potentially adding further pressure to risk sentiment if the move gains momentum. Metals are also significantly weakened and continue to trade lower, indicating that the current selling pressure extends beyond equities and technology stocks.
In the currency market, AUDUSD remains capped by its 50-day moving average on the daily chart. This resistance could continue to limit upside potential, particularly if the Dollar strengthens further and risk appetite deteriorates. The Japanese Yen is showing a mixed performance, with slight losses against some peers, although its broader positive trend remains intact. With technology stocks struggling and the Dollar recovering, the coming sessions could prove important in determining whether the current weakness develops into a broader market correction or whether strength in blue-chip stocks helps stabilise sentiment.
Tendencies in the markets
- Equities weak, USD rising, crypto weak, oil stronger, metals weak, JPY sideways.
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