- Nasdaq futures fall after September inflation data comes in hotter than expected, with CPI rising to 3.7% year-on-year.
- Money markets price a 45% chance of an October Fed hike and an 85% probability of a December increase.
- Rising oil prices from escalating Middle East hostilities add to persistent inflation pressure and support Fed tightening.
- Higher rate expectations pressure growth-oriented tech stocks, which are a major component of the Nasdaq 100.
- The Nasdaq 100 trades above its rising trend line but tests its 20 EMA; a break below this level leads to further declines, per the technical analysis.
Quotes
“money markets now pricing in a 45% chance of an October hike and an 85% probability for a December increase”