Tariff and government shutdown worries cause Dow, Nasdaq 100 and Nikkei 225 to stumble
While there has been some buying in indices mid-week after the US inflation data, the upward move is running into trouble on a mix of tariff worries and government shutdown fears.
Dow heading back to 41,000?
The Dow Jones index suffered an indecisive day yesterday, testing a new low while also rebounding to near 42,000 before falling back.
Early trading this morning has seen further losses as the index heads back towards yesterday’s low at 41,000. There has been little sign of a bounce, and a drop through 41,000 opens the way to the September lows at 40,193 and 40,000.
Nasdaq 100 rally struggles
The Nasdaq 100 has rallied for two days off the lows of the week but has run into some selling in early trading this morning.
A move below Wednesday’s low of 19,351 would put further pressure on the index and suggest a retest of the week’s lows. Alternately, the price may look to move back above 19,700 to help reinforce the view that a low has formed.
Nikkei 225 bounces but for how long?
This Nikkei 225 index has also enjoyed a brief rally off the lows of the week, but overnight it has dropped back below 37,000.
A renewed drop heads towards 36,000, and then the September lows at 35,000 come into view. Buyers need to regain the 37,000 level to help support a short-term bullish view.
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