Terror Attack, Politics Weigh Nasdaq, What Next? Last week Nasdaq losses 0.64% Due to various Political and Economic Events. Let’s analyze this week where Nasdaq Composite Index may go?
A Van was driven into pedestrians on La Rambla in Barcelona on the afternoon of 17th August. It killed 13 and injured at least 100. The Prime Miniter of Spain, Mariano Rajoy called the attack in Barcelona a Jihadist Attack. After the news markets came bit nervous stocks losses its value.
Fed July Minutes Release:
FOMC released its July minutes on 16 August. The divide appeared in the minutes, As Some officials are forcing to wind up the Federal Reserve balance sheet and some concerned about lower inflation. This leads to confusion across stock market participants and leads to some long position unwinding.
Trump Pro-Growth Agenda:
Nasdaq Composite hit hard by the rumor the possibility of that Gary Cohn might step down as head of President Trump’s National Economic Council. Investors worried about President Donald Trump’s ability to pursue his pro growth policies. It leads to profit booking by swing traders.
The possibility of World War 3:
US sends the military to North Korea BORDER as tensions with Pyongyang escalate. THE United States and South Korea are preparing to roll out their armies across the North Korean border as the threat of World War 3 intensifies. Finally, a war like situation causes temporary knee jerks in markets volatility may shoot up. In India and China border also tensions mounting be ready for volatile markets.
Terror Attack, Politics Weigh Nasdaq, What Next?
Nasdaq under performs the DOW JONES and S&P 500 for last 4 weeks in a row. So NASDAQ COMPOSITE INDEX is the weakest of them all.NASDAQ COMPOSITE INDEX is the high beta index of the three US stock indices. NASDAQ COMPOSITE INDEX FUND is the best way to invest in the Nasdaq index.
Last week Nasdaq composite index opened the week at the level of 6306.11 on a strong note. On the back of news tension easing between the US and North Korea. And slowly went up to register the weeks high at 6374.53. After the FOMC Minutes sellers dominate the week and Barcelona terror Attack added fuel to the fall then the index fell to the level of 6214.Finally, the Nasdaq Composite Index closed the week at 6256 with the loss of 40 points or 0.64%.
For the coming week support for the NASDAQ composite index is placed at 6190 to 6200 if support breaks then the index will crash to the levels of 6156 to 6104. If the support holds the NASDAQ composite index may rise to the levels of 6306 to 6374.