Nasdaq’s Losses Continue, Facing Potential Seventh Day of Declines, Reports Forexlive

Nasdaq’s Losses Continue, Facing Potential Seventh Day of Declines, Reports Forexlive

The Nasdaq Composite Index has been on a downward trend for the past six days, and it looks like the losses may continue for a seventh day. According to a recent report by Forexlive, the tech-heavy index has been struggling amid concerns about rising inflation and interest rates.

The Nasdaq has been hit particularly hard in recent days, with tech stocks bearing the brunt of the sell-off. Companies like Apple, Amazon, and Microsoft have all seen their share prices decline as investors worry about the impact of higher inflation on their bottom lines.

One of the main factors driving the Nasdaq’s losses is the recent surge in inflation. The Consumer Price Index (CPI) rose by 0.8% in April, marking the biggest monthly increase in more than a decade. This has raised concerns that the Federal Reserve may need to raise interest rates sooner than expected to combat inflation, which could weigh on tech stocks that have benefited from low borrowing costs.

In addition to inflation concerns, the Nasdaq has also been impacted by a rotation out of growth stocks and into value stocks. Investors have been shifting their focus towards companies that are more economically sensitive and less reliant on low interest rates. This has put pressure on tech stocks, which have been some of the best performers during the pandemic.

Despite the recent losses, some analysts remain optimistic about the long-term prospects for the Nasdaq. They point to strong earnings growth and innovation in the tech sector as reasons to be bullish on the index. However, in the short term, it looks like the Nasdaq may continue to face headwinds as investors grapple with uncertainty about inflation and interest rates.

In conclusion, the Nasdaq’s losses continue as it faces a potential seventh day of declines. The index has been hit by concerns about rising inflation, interest rates, and a rotation out of growth stocks. While some analysts remain optimistic about the long-term outlook for tech stocks, in the near term, it looks like the Nasdaq may continue to struggle. Investors will be closely watching for any signs of a turnaround in the coming days.

• Source Link: https://zephyrnet.com/nasdaq-gives-up-gains-threatens-seventh-consecutive-day-of-declines-forexlive/