{"id":15624,"date":"2024-11-04T06:17:23","date_gmt":"2024-11-04T06:17:23","guid":{"rendered":"https:\/\/www.vtmarkets.com\/?p=15624"},"modified":"2024-11-04T06:17:23","modified_gmt":"2024-11-04T06:17:23","slug":"nasdaq-braces-for-us-elections-and-rate-cuts","status":"publish","type":"post","link":"https:\/\/www.global-vtrader.com\/en\/analysis\/nasdaq-braces-for-us-elections-and-rate-cuts\/","title":{"rendered":"Nasdaq Braces for US Elections and Rate Cuts"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\"><em>Listen to the article here:<\/em><\/p>\n\n\n\n<figure class=\"wp-block-audio\"><audio controls src=\"https:\/\/www.vtmarkets.com\/wp-content\/uploads\/2024\/11\/15624.mp3\"><\/audio><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Key Points:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Nasdaq futures dip as traders await election results and Fed meeting.<\/li>\n\n\n\n<li>China\u2019s NPC meeting to shed light on new economic stimulus.<\/li>\n\n\n\n<li>Oil prices rise 1.6% after OPEC+ delays output hike.<\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity is-style-dots\" \/>\n\n\n\n<p class=\"wp-block-paragraph\">Markets kicked off the week with caution, as traders prepared for a packed agenda. The Nasdaq was in focus, with futures slipping 0.11% as the U.S. presidential race neared its conclusion.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">Bloomberg Economics\u2019 chief economist Tom Orlik on whether markets are correctly pricing in risks like hot and cold wars and the US election. <a href=\"https:\/\/t.co\/vLCoE9CX6G\">https:\/\/t.co\/vLCoE9CX6G<\/a><\/p>&mdash; Bloomberg (@business) <a href=\"https:\/\/twitter.com\/business\/status\/1853171335725289861?ref_src=twsrc%5Etfw\">November 3, 2024<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">The tight race between Kamala Harris and Donald Trump has put markets on edge, with both candidates neck and neck in the polls, adding a layer of uncertainty over U.S. economic policy.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Adding to the complexity, this week also brings critical central bank decisions, including from the Federal Reserve, which is widely expected to implement a 25-basis-point rate cut.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Markets have nearly priced in this move, especially as recent data points to cooling inflation but strong consumer spending. This decision will be particularly <strong><a href=\"https:\/\/t.co\/FGwHKEQHut\">impactful for tech stocks on the Nasdaq<\/a><\/strong>, which benefit from a lower interest rate environment due to their reliance on growth funding.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\"><strong>Nasdaq\u2019s Tech Giants in the Spotlight<\/strong><\/h2>\n\n\n\n<figure class=\"wp-block-image size-large is-resized\"><img decoding=\"async\" src=\"https:\/\/www.vtmarkets.com\/wp-content\/uploads\/2024\/11\/image-6-1024x440.jpeg\" alt=\"\" class=\"wp-image-15625\" style=\"width:1381px;height:auto\" \/><\/figure>\n\n\n\n<p class=\"has-text-align-center wp-block-paragraph\"><em>Picture: NAS100 shows a recovery above the 20,000 level, with steady upward momentum, as seen on the <a href=\"https:\/\/vtmarketsapp.onelink.me\/CD7D\/240525WA\" title=\"\">VT Markets app<\/a>.<\/em><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">From the charts, we can see the pattern of Nasdaq&#8217;s recent bullish movement, closing at 20,120.55 with an intraday high of 20,151.05 and a low of 19,973.55. The gradual upward trajectory with price action climbing back above the key 20,000 psychological level, could act as significant support if the upward trend continues.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Nasdaq futures were initially under pressure after mixed earnings last week, with Facebook\u2019s Meta falling 4% and Microsoft sliding 6%, despite strong earnings reports. Traders seemed wary of the impact that AI investments could have on profitability.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">However, Amazon\u2019s surprise 5.3% after-hours rally brought some optimism, adding $104 billion to its market cap after beating profit expectations.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">Wall Street&#39;s major indexes ended higher, rebounding from the previous day&#39;s sell-off as Amazon&#39;s strong earnings countered a significant drop in US job growth in October <a href=\"https:\/\/t.co\/ZNcNrZFAfA\">https:\/\/t.co\/ZNcNrZFAfA<\/a> <a href=\"https:\/\/t.co\/LKZ5lWeQd3\">pic.twitter.com\/LKZ5lWeQd3<\/a><\/p>&mdash; Reuters (@Reuters) <a href=\"https:\/\/twitter.com\/Reuters\/status\/1852502633573138639?ref_src=twsrc%5Etfw\">November 2, 2024<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">These swings in major tech names reflect the uncertainty facing the Nasdaq, with volatility expected to remain high ahead of the election.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\"><strong>China\u2019s NPC Meeting Adds to Market Tensions<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Meanwhile, the National People\u2019s Congress (NPC) meeting in China this week could also impact Nasdaq-listed companies with <strong><a href=\"https:\/\/t.co\/Ujz8giRBfn\">significant exposure<\/a><\/strong> to China. With potential announcements of a massive stimulus package, the meeting will be closely watched.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Chinese stocks showed mild gains, with the CSI300 up 0.2%, while the Hang Seng climbed 0.4% on Monday. A strong push in China\u2019s economy could benefit U.S. tech companies reliant on Chinese consumer demand.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\"><strong>Oil and Commodities Market Impact on Tech<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Oil prices added another layer of intrigue for the Nasdaq. Brent crude futures rose 1.6% to $74.28 per barrel after OPEC+ delayed a planned output increase.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong><a href=\"https:\/\/t.co\/A3CvtDLreu\">Rising oil prices<\/a><\/strong> could ripple through costs for tech companies with large supply chains and heavy logistics, adding pressure on margins.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>See also: <a href=\"https:\/\/www.vtmarkets.com\/analysis\/dollar-dips-on-uncertain-us-election-possible-fed-rate-cut\/\">Oil Climbs on Gulf Tensions, OPEC+ Outlook<\/a><\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Yet, a stabilised oil market might help ease fears of inflation, which would support the Fed\u2019s expected rate cut\u2014a net positive for growth-focused Nasdaq stocks.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\"><strong>Upcoming Catalysts and What to Watch<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Aside from the election, Friday\u2019s U.S. nonfarm payrolls report could influence the Fed\u2019s tone and rate decision next week. Economists expect 113,000 new jobs for October, although forecasts range widely.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Nasdaq traders will be watching for any surprises, as a strong job report could complicate the Fed\u2019s rate cut decision, possibly curbing gains in tech stocks if rates are kept higher.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Start trading now \u2014 click <\/strong><strong><a href=\"https:\/\/www.vtmarkets.com\/trade-now\/?utm_campaign=account_c&amp;utm_source=dma&amp;utm_medium=website\">here<\/a><\/strong><strong> to create your live VT Markets account.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Cautious trading in Nasdaq as U.S. election, Fed meeting, and China\u2019s stimulus updates loom large over market sentiment. &#8211; vtmarkets.com<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[27],"tags":[31],"class_list":["post-15624","post","type-post","status-publish","format-standard","hentry","category-analysis","tag-indices"],"acf":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/posts\/15624","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/comments?post=15624"}],"version-history":[{"count":0,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/posts\/15624\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/media?parent=15624"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/categories?post=15624"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/tags?post=15624"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}