Nasdaq 100 Scores a Fresh YTD Peak, the S&P 500 Struggles with Volatility

9 May 2023, Tuesday
Nasdaq 100 Scores a Fresh YTD Peak, the S&P 500 Struggles with Volatility

Understanding the S&P 500 and NASDAQ 100


US stocks have been moving up and down in a range for a while now. The S&P 500 and NASDAQ 100 both went up a little bit yesterday, but they’re still not sure which way to go. Last week, the Federal Reserve had a meeting that gave people hope for the future of US stocks, but now people are worried about a possible recession.


Even though people are worried about a recession and problems with US banks, companies in the US are still making a lot of money. This is helping to balance out the worries. People are also worried about the US Debt Ceiling, which is the amount of money the US government can borrow. If the US can’t borrow any more money, it could cause big problems for the US and the rest of the world. Today, US President Biden is going to talk to some important people about the Debt Ceiling to try to find a solution.


NASDAQ 100 Overview


The NASDAQ 100 Index has been going up and up lately. It reached a new high yesterday. It was in a bear market for a long time, but now it’s in a bull market. This means that it’s going up a lot. Even though it’s going up, it’s still not as high as it was in November 2021. If we look back at other times when the NASDAQ 100 Index went down, this time isn’t as bad as some of the other times.


Today, there isn’t much important news coming out. People are waiting to hear about US CPI data. Which is a way to measure how much prices are going up. Some big companies are going to tell people how much money they made today, like AirBnB and Occidental Petroleum.


People are happy that the Federal Reserve might not raise interest rates anymore, but things are still hard. On Friday, there was good news about jobs. But that might mean that the Federal Reserve will keep interest rates high for longer. Yesterday, a report showed that companies are having a harder time getting loans. This could mean that the economy will get worse and US stocks will go down.


S&P 500 Overview


The S&P 500 has been going up and down a lot lately. It’s been stuck between 3800 and 4200 for a while now. If it goes above 4200, that would be good news. If it goes below 3800, that would be bad news. The NASDAQ 100 is also stuck in a range between 12850 and 13300. Even though the NASDAQ 100 is going up a lot, it’s still not clear what will happen in the future.