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CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

Sharp tech-led sell-off: Nikkei 225, FTSE 100, NASDAQ 100 and S&P 500 in free fall

​​​Sharp tech-led sell-off led to a 4% drop in the Nikkei 225, 3% fall in the NASDAQ 100, 2% drop in the S&P 500 and 1% slip in the FTSE 100.​​

Indices Source: Adobe images

​​​Nikkei 225 drops by over 4%

​The Nikkei 225 took its cue from US stock indices which had their worst bout of volatility since last month’s sharp decline and dropped by over 4% to a 2-week low.

​The 9 August low at 35,935 represents the next downside target while the late August lows at 37,817-to-37,895 resistance.

​The fact that the 200-day simple moving average (SMA) at 38,493 has been slipped through indicates that further downside is likely to be seen.

Nikkei 225 chart Source: IT-Finance.com
Nikkei 225 chart Source: IT-Finance.com

​FTSE 100 takes a hit, drops to 2-week low

​On Tuesday the FTSE 100 suddenly slipped through its August-to-September uptrend line and tumbled to its 55-day SMA at 8,239 as US traders returned from their prolonged Labor day weekend.

​The May-to-early July lows at 8,138-to-8,106 represent the next downside targets ahead of the 25 July low at 8,056.

​Minor resistance sits at the 20 August low at 8,240. Further minor resistance can be spotted at the 27 August 8,314 low.

FTSE 100 charts Source: IT-Finance.com
FTSE 100 charts Source: IT-Finance.com

​S&P 500 drops on tech sell-off

​The S&P 500 has swiftly come off its 5,655 record high as disappointing US manufacturing data and a tech-led sell-off pushed the index down by over 2% to the 55-day SMA at 5,510.

​Potential downside targets are the 25 and 29 July lows at 5,396 to 5,392 ahead of the 5,343 May peak.

​Resistance can be spotted at the 28 August low at 5,545 and the 22 August low at 5,562.

S&P 500 chart Source: IT-Finance.com
S&P 500 chart Source: IT-Finance.com

​NASDAQ 100 drops

NASDAQ 100 shares such as NVIDIA slid by around 12% since Tuesday (including after-hours trading), shedding more than $250 billion in market capitalisation, following a Bloomberg report that the US Department of Justice had sent the company a subpoena, deepening its antitrust probe.

​The index so far dropped by over 3% to a 2-week low at 18,777 with the late July trough at 18,584 being next in line . If fallen through, the May low at 18,188 would come to the fore.

​Minor resistance can now be seen at last week’s 19,081 low.

NSAQDAQ 100 chart Source: IT-Finance.com
NSAQDAQ 100 chart Source: IT-Finance.com

This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.

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