The tech sector in the U.S. retreats while the dollar advances. The contributing factors are many, but several key developments warrant closer inspection. Firstly, global demand is currently falling, which is evident in the energy market and in the price of crude oil. Secondly, investors' sentiment was shaken recently owing to the vaccine-rollout tribulations and the adamantly dovish stance of the FED on inflation.
The last two developments have caused a resurgence in demand for lower-risk securities, which, in turn, is hurting stocks. That is why the Nasdaq Composite is likely to continue depreciating in the near future, while investors' appeal for the greenback appreciates.
This process is likely to become even more pronounced this week owing to the several testimonies of FED Chair Jerome Powell, one of which is scheduled to take place later today. Moreover, the expectations for weaker durable goods orders in February are likely to exert additional pressure on industry stocks, potentially affecting the tech sector as well.
All of these contributing factors are likely to exacerbate the short-term woes for the Nasdaq, which is already showing signs of a potential bearish reversal.
|Short Term||Long Term||Net % Gains|
|402 BPS||0||0||221 BPS||
|Net % Gains|
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