S&P 500, Nasdaq and ASX powered by more certainty as Powell cemented 25 basis-point rate hike
S&P 500, Nasdaq and ASX were back by the return of risk appetite after the Federal Reserve Chair, Jerome Powell, cemented the view of a 25 basis-point rate hike.
The global stock market shrugged off the haze after Federal Reserve Chair Jerome Powell’s speech on Wednesday, which introduced more certainty over the US central bank’s next move. While acknowledging the effect of the Ukraine war as “highly uncertain," Powell confirmed the need to tackle the fastest-growing inflation which has not changed in 40 years.
The Federal Reserve Chair made it clear that he is “inclined” to back a quarter-point interest-rate hike this month but did not rule out a more aggressive move if inflation comes in too hot. The US’s February data on consumer prices will be released on Thursday 10 March, five days before the next FOMC meeting. The reading would be the final stone to cement the rate hike decision.
Nasdaq
The tech-heavy Nasdaq index was back by the return of risk appetite and jumped over 1% on the day. The price is moving toward the week-high level supported by a weekly ascending trend line. Near-term support sits at the 20-hours MA around 141016. Pressure comes from the 100-hour MA, which, if broken through, could open the door to the high on 17 February, looking at 14583.
Nasdaq Hourly Chart
S&P 500
S&P 500 surged 1.86% by the end of the Wednesday trading session. The daily chart shows that the index has confirmed a breakout from the downward moving channel and has eyes on the next challenge. The low from the end of January around 4283 should be the imminent support insight. If the price manages to overcome the pressure from the 20 days MA, the next test will be 4485.
ASX 200
The Australian stock market enjoyed its second day of gains on Thursday. The 4-hour chart shows the price is facing the 100-MA after successfully jumping above 20 and 50 MAs. The level of 7172 would be a major test for the index as the price has been pushed back from this level for the past five weeks (according to the weekly chart). If the index succeeds for the sixth try, we can expect the ASX to climb towards 7240 for the near term. Next support is looking at 7097, where the black and green line sits from the 4-hour chart.
ASX Hourly Chart
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