When the magnificent seven firms fell, it took the widely followed technology index lower. Nasdaq fell for four days in a row ending Aug. 18, 2023. This adds to three straight weekly losses, the longest weekly losing streak since Dec. 2022.
Ahead of Nvidia (NVDA) reporting quarterly results this week, Tesla (TSLA), Apple (AAPL), and Microsoft (MSFT) are among the firms falling from profit taking.
Sentiment led the market higher as traders believed in a soft landing. However, the Federal Reserve minutes reaffirmed inflation as a primary concern.
This week, markets will listen to Fed Chair Jerome Powell’s comment at the Jackson Hole annual symposium. He will likely repeat the bank’s rate-tightening bias. US treasury yields in the 4.25% to over 5% will pressure stock valuations. Investors seeking safety may park their 2023 gains in those assets at no risk. After Nasdaq gained 34.5% YTD, those buying today are chasing gains that others already made. Buying today is a higher risk than when markets traded at maximum pessimism from late last year.
In the EV market, Tesla’s price cuts for cheaper models in the U.S. and those in China hurt TSLA stock. iPhone supplier Apple will announce iPhone 15 next month. Markets are already selling on the news ahead of the product update.
AI leader Microsoft (MSFT) is consolidating below its support moving average. It risks falling to around $280 before shaking out the weak hands.
