- The Nasdaq 100 hit a new all-time high at 19,557 after Federal Reserve Chairman Jerome Powell’s press conference.
- The Federal Reserve (Fed) maintains the interest rate at 5.5% for the seventh consecutive meeting.
The Nasdaq 100 hit a daily low of 19,212 during the European session. However, aggressive buyers sprang into action with the announcement of a moderation in the Consumer Price Index and later with the decision to keep interest rates at 5.5% by the Fed, leading the Nasdaq 100 to establish new highs. historical at 19,557. At the time of writing, the Nasdaq 100 is trading at 19,459, gaining 1.30% on the day.
The Federal Reserve (Fed) of the United States decides to keep the interest rate unchanged at 5.5%
This is the seventh consecutive meeting in which the entity does not modify interest rates. Based on the Fed’s statement, the Committee seeks to achieve maximum employment and an inflation rate of 2%. Inflation has declined over the past year but remains elevated, so we will continue to monitor the implications of incoming data for the economic outlook.
Jerome Powell, president of the United States Federal Reserve, highlighted the achievement of good results so far, reducing inflation with a gradual cooling of the economy. He mentioned that wages are not the main cause of inflation, but they need to come down to get overall inflation back to 2%.
Dot plot projections released by the Federal Open Market Committee (FOMC) of the Fed Board of Governors indicate that interest rates will average 5.1% by the end of 2024. These projections provide greater clarity to traders, since the market only expects a rate cut from the Federal Reserve. Traders have interpreted this information positively leading the Nasdaq 100 to set new all-time highs at 19,557 today.
Technical levels on the Nasdaq 100
The Nasdaq 100 continues with a clear upward trend, we observe the first support at 19,230, in line with the 23.6% Fibonacci. We see the next support at 18,900, the minimum of June 7 that converges with the 50% Fibonacci. The nearest resistance is at 20,400, projection at 161.8% Fibonacci.
Nasdaq 100 4-hour chart
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
