The fall yesterday could be in part due to both rising Treasury yields and also the geopolitical worries surrounding the Israel-Hamas conflict. Tech stocks fell the most with the Nasdaq itself down 1% but perhaps more worryingly, we are seeing a pattern of lower highs, lower lows developing there:
Nasdaq Composite index daily chart
The saving grace is that the trendline support (white line) is still a distance away, seen below 13,000 for now. But considering the more tepid mood, equities may be poised to end the week lower already with the Nasdaq down 1.6% this week before the open later.
S&P 500 futures are down 0.1% at the moment, reflecting a less than enthusiastic mood. That comes despite 10-year Treasury yields held back below the 5% mark for now but it is perhaps also a signal that safety flows could be at play before the weekend comes along later. I reckon we might have to wait until US trading once again to figure all of this out.
