Bond Squeeze and AI Debt Financing Weigh on Nasdaq as Fed Signals More Hikes
NDX sits 36% above its 52-week low of $22,841.417.
Summary
The Nasdaq 100 is under pressure as the bond market squeeze intensifies. Fed minutes revealed most policymakers saw more rate rises ahead, and Governor Waller reinforced that additional hikes are likely needed to hit the 2% inflation target, while noting some flexibility on when they occur and that they need not come at consecutive meetings. Waller also said recent data reinforce the view that the labor market is stable and inflation is too high, so the Fed must focus on the inflation side of its mandate. The 10-year term premium hit its highest since 2014, reflecting broader concerns about debt levels and government financing. Meanwhile, a flurry of AI-related debt financing deals—Broadcom-OpenAI, SpaceX-Nvidia up to $40B, Broadcom-Anthropic—raises stakes for the upcoming earnings season. TSMC beat revenue forecasts and Samsung's operating profit surged over 700%, yet Samsung shares fell on signs of cooling growth. This follows a volatile period for the Nasdaq 100, which has seen 1%+ daily swings in 20 of 26 sessions and entered correction territory in late July. The 30-year bond auction later today and weekly jobless claims are key near-term events.
At the time of this announcement, NDX was trading at $31,160.08 on NASDAQ in the Technology sector. The 52-week trading range was $22,841.42 to $31,361.37. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Reuters.