The Nasdaq 100 tried to recover on Friday, but at this point, it looks like the concerns of war, inflation, and energy continues to be a driver.
NASDAQ 100
The Nasdaq 100 initially did rally during the trading session on Friday, but gave back those gains rather rapidly as we continue to see a lot of concerns around the world when it comes down to the direction of the war, direction of risk appetite in assets, and of course, it is worth noting that there really isn't much in the way of clarity at the moment.
It is facing significant risk-off pressure as geopolitical tensions in the Middle East, specifically the Strait of Hormuz, has driven Brent crude much higher and therefore causes a lot of fear and throws it into the marketplace regardless of the companies you're looking at. 10-year yields have risen in the United States to 4.27% at one point during the session and that also is causing a bit of an issue.
The one thing that energy does do is it drives up AI data center operating costs for companies like Amazon, so in that sense it directly influences, but all things being equal, this is a market that is just simply nervous.
Market Resilience and Technical Support
I will say though that it has been fairly resilient considering everything that's going on. We are still somewhat supported. The 200-day EMA is an indicator that a lot of people look at as a floor and as long as we can stay above there, I think we're okay.
If we drop down below there we could drop to the 23,250 level. We don't know what's going to happen over the weekend, so analysis is a bit tricky, but if we don't get anything too bad over the weekend, it's likely that we will see a bit of a bounce.