Major US indices fell sharply on Monday as rising US treasury yields following a larger than expected jump in US consumer prices, tempered demand for risky assets. Technology stocks are taking the biggest beating as they are most likely to suffer the most from potential economic downturn and rising interest rates. The Fed is expected to announce at least a 50 bps rate hike on Wednesday and analysts are pricing in two half-point and one 75 basis-point hikes by September.
US100, D1 interval. The US technology benchmark broke below the key support at 11,500 points and is now down more than 4.2%. If current sentiment prevails, downward move may accelerate towards next support at 10460 pts, which is marked with 61.8% Fibonacci retracement of the upward wave launched in March 2020. Source: xStation5
