Sell-off on Wall Street intensifies following a batch of upbeat economic data reinforced the case for further monetary policy tightening. Tech sector is the most sensitive and the US100 contract which is tied to NASDAQ fell nearly 4.5% on Thursday, driven mostly by Tesla, whose shares fell over 9.0% and other big names including Microsoft and Apple which dropped over 4.0% and 3.0%.
From a technical point of view, the US100 already left the consolidation late last week - setting the course for the current downward move. After a local correction, the downward resumed after the release of today's macro data from the US and broke below this month's lows. Currently the index is approaching support at 10850 pts. In case of a downward breakout, the next target for sellers will be the zone at 10715 points.It is worth remembering that the PCE inflation reading will be published tomorrow and the market expects that price pressure will ease significantly. However, given today's figures, Friday's report may also turn out to be a disappointment, which would only provide more fuel for market bears.
US100, H4 interval. Source: xStation5
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