Nasdaq tanks on heavy volume on news to restrict economical activities

Nasdaq

Let’s explore the reason for fall in Nasdaq 

  • Monday Rally fizzle out in last hour after news from California orders to shut down Malls, fitness centers, worships places and other places on rising cases.
  • This has led to sharp fall in Nasdaq and other indices in U.S. as these steps will further derail the economical recovery under this pandemic.  
  • Surging corona cases in US, a key to global equities..
  • Asian markets are trading with red biased this morning. (7:32 A.M)
  • SGX Nifty is in red note this morning. (7:32 A.M.)

wall street

Why Nasdaq tumbled on Monday?

  • Nasdaq and other indices in US markets have recouped all the losses due covid 19 pandemic. This was on the back of reopening economies as the growth engine has started to move again and this has resulted in the optimism  in the mind of investors that things will improve here onward.
  • Now again the US states are closing due to rising corona cases is the reason of fizzle out of this optimism. As this will again put the brakes on economical activities and rising unemployment. That why markets have fallen yesterday on news from California orders to shut down Malls, fitness centers, worships places and other places on rising cases.

US Markets

 

  • Dow Jones Industrial Average increased by  10.50 points, or 0.04%, close at 26,085.80.
  • The S&P 500 fallen by 29.82 points, or 0.94%, ends at 3,155.22.
  • Nasdaq Composite Index tanked by 226.60 points, or 2.13%, close at 10,390.84.
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Asian Markets In Morning

Indices Current Value Prev. Close % Change
Nikkei 225  22,608.74 22784.74 -0.77%
Straits Times  2,625.57 2631.08  -0.21%
Hang Seng   25,488.92 25772.12  -1.10%
Taiwan Weighted  12,200.57 12211.56  0.07%
Kospi  2,176.24 2186.06 -0.45%
Jakarta Composite  5,063.24 5064.45 -0.02%
Shanghai Composite  3,445.99 3443.29  0.08%
SGX Nifty  10,766.50 10811.50 -0.42%
Time of data collection: 7.32 A.M

Nifty 50 outlook for the day.

  • SGX Nifty is suggesting that Indian Markets will start at around 10750 level. With rising corona cases and restricting of economical activities our advise is not to trade for few days as the world is full of confusion. Still do not short market as technical charts are positive. Sit & lets the market decide where to move either up or down but do not trade till you get decisive uptrend or downtrend.
Learn Technical Analysis: Click Here
 
Author: Akhil Mahajan, M.D. Mutual Fund Advisory, www.mutualfundadvisory.co.in,

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