Today we had the release of factory orders data in the USA. The report confirmed that the US economy is showing the first signs of potential deceleration, as factory orders and new orders for manufactured goods experienced a decline in October. Factory orders fell 3.6%, slightly more than forecasted, signaling a slowdown as we approach December. The decrease in orders, particularly in durable goods, which slid 5.4%, indicates a possible softer economic landing, with concerns about weaker consumer spending due to declining housing data.
However, the new data did not exert significant pressure on the market. Today's declines are more driven by the strengthening dollar and a normal correction following dynamic increases in the recent period. The leader of today's declines is the Nasdaq index, which in turn is being pushed down by the largest companies that make up its composition:
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- Apple (1.5%)
- Alphabet (2.6%)
- Microsoft (2.1%)
- Tesla (0.8%)
- Amazon (1.7%)
This downturn in tech stocks is contributing to overall market declines, with the Dow industrial average, S&P index, and Russell 2000 also reflecting these changes.
From a technical point of view, the Nasdaq 100 Index, after posting a substantial 35.00% gain earlier this year, has now halted gains near this year's and historical highs. Key technical indicators now suggest a deceleration of the upward momentum. If downward pressure continues, the next level worth monitoring will be 15100 points.
Source: xStation 5
