The NASDAQ 100 pulled back a bit in the early part of the Wednesday session, as we are looking ahead to the employment figures on Thursday. This is a market that looks like patience will pay off.
NASDAQ 100
The NASDAQ 100 did pull back a bit during the trading session on Wednesday, which is not a huge surprise considering that we have the non-farm payroll announcement coming out on Thursday, and of course, traders will be trying to square their books before that. Because of this, the market is unlikely to take a lot of risks ahead of the jobs numbers.
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Furthermore, Friday is closed in the United States, so I think you've got a situation where traders are just simply looking to get out of the market. It would not surprise me at all to see this market drift a bit lower, but I do like to buy this market as a pullback could open up value.
Squeeze?
This is a market that's been squeezing, and we, of course, have been looking at the artificial intelligence trade come and go, and right now we are also looking at interest rates in the United States continuing to bounce a bit, showing more strength. If that's going to be the case, then you have to look at this through the prism of whether or not traders will be taking risks in tech companies.
The jobs number will obviously have a major influence on that, and it's worth noting that traders are now starting to bet on 2 interest rate hikes between now and the end of the year, and if that's going to be the case, if that actually happens, it is a drag. This is a correlation that is well-known, as we are likely to see issues going forward.
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