Stocks swung wildly on Monday as investors continued to digest recent economic data while waiting for comments by Uncle Powell. It is expected to have profound implications for both the interest rates and the stock market.
It’s show time for Uncle Powell.
He will be testifying at the Senate Banking Committee today and with the House Financial Services Committee on Wednesday. His chat about the monetary policy will be heavily scrutinised for hints on the possible next move in interest rates.
Market participants expect the FOMC to raise rates by a few more times to help push down economic demand and cool inflation. Such a move is a shock for stocks as it will likely hurt the company’s earnings.
Nasdaq rejected at the near-term resistance line
We can see that QQQ is rejected at the 303.73 level we shared previously. Without any reversal, it should find some support at the 297 level. All eyes will still be on economic data and the Uncle Powell’s comment.
What’s on the menu today?
At 11 pm, Uncle Powell will begin his speech. We will wait for more hints and clues before taking on any market swings and catching any undertone of his testimony.
It is 7 March, Tuesday, 8.50 am in Singapore and 7.50 am in New York. We wish everyone a splendid trading week!
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All is well.