The US stock indices are tumbling lower with all the major indices down over 1.25%. The NASDAQ index is leading the way with a fall of -1.83% at 22,296. The Dow industrial average is down -1.35% and the S&P is down 1.26%.
Looking at the daily chart of the NASDAQ index, it has moved away from its 50 day moving average currently at 22862.03. The past 2 trading days has seen the price trading above and below that level. On Friday, the price closed just above it, yesterday the price closed just below it tilting the bias more to the downside.
Looking at the next target, that would come in against the October lows near 22204.43. Below that is the rising 100 day moving average at 21996.84. The last time the price traded below the 100 day moving average is back on May 9. That move back above was the go-ahead to push higher after the -26% decline from the December 2024 highs.
For the trading year, the NASDAQ index is still up over 15%.
Nvidia, a benchmark for the Nasdaq index, will report their earnings tomorrow. Their stock is down $4.70 or -2.48% at $182.17. The low price today reached $179.65. At session lows, the price was testing its rising 100 day moving average currently at $179.52, and found willing buyers just ahead of that level.
Nvidia during their investor day a few weeks ago showed orders of $500 billion. Soon thereafter, the price reached its high of $212.19. Since and the price has declined by over 15.3% (from the high to the low).
The wall of worry continues to build despite the expectations for continued a strong demand..
Ironically, Anthropic is announcing that they will spend $30 billion in compute through Nvidia and Microsoft. Microsoft shares are also down sharply today by -2.76%.
