* Major U.S. indexes slide; chips, FANGs hit harder
* All major S&P 500 sectors down; cons disc weakest group
* Euro STOXX 600 index falls ~1%
* Dollar up; gold, crude, bitcoin down
* U.S. 10-Year Treasury yield rises to ~1.80%
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U.S. STOCKS SLIDE AS RATE JITTERS BUILD (1002 EST/1502 GMT)
Major U.S. indexes are sharply lower in early trade on
Monday as heavyweight FANG and technology stocks dropped on
expectations of a high interest rate environment.
With this, the U.S. Treasury yields climbed to new two-year
highs. Indeed, the U.S. 10-Year Treasury yield is
pushing back over 1.80%.
That said, the S&P 500 Banks index has now turned
slightly red, and all major S&P 500 sectors are down on
the day.
Meanwhile, the Nasdaq Composite has violated its
rising 200-day moving average, which now resides around 14,688.
The IXIC last closed below this long-term moving average on
April 21, 2020. With its loss, the IXIC now stands down around
9% from its November-19 record close.
Of note, the IXIC's daily RSI has now fallen to its most
oversold level since May 2021.
Here is where markets stand in early trade:
(Terence Gabriel)
*****
NASDAQ COMPOSITE: YIELDING TO THE DOWNSIDE (0900 EST/1400
GMT)
With CME e-mini Nasdaq 100 futures suggesting the
Nasdaq 100 index is poised to fall more than 1% in early
trade, it appears likely that the Nasdaq Composite will
violate its December lows.
In so doing, the tech-laden Composite will be on track for a
fifth-straight down day. The IXIC last fell five-straight days
in late-September/early-October 2021.
Meanwhile, tech is quoted down ahead of the open,
putting the S&P tech sector also on track to fall for
a fifth-day in a row, which would be its longest losing streak
since a seven-day slide in late-April/early-May of last year.
On the Composite, once its December lows give way, the next
significant support can be the rising 200-day moving average,
which ended Friday around 14,680. The Composite has not closed
below this longer-term moving average since April 21, 2020:
There is chart congestion in the 14,211/14,175 area that
includes a number of significant 2021 highs and lows. The 23.6%
Fibonacci retracement of the entire March 2020/November 2021
advance is at 13,951.
Of note, the IXIC's daily RSI ended Friday at its lowest
level since the Composite's October 4 low. That said, the rising
U.S. 10-Year Treasury yield remains a drag on
growth/tech shares, and, therefore, a thorn in the Composite's
side. The rolling 10-day correlation between tech and the
10-year yield is now -0.88, or a strong negative relationship.
However, the 10-year yield is on track to rise for a
seventh-straight day, which would be its longest such streak
since an eight-day run of gains in April 2018. So, on the plus
side for Nasdaq bulls, at least shorter-term, just as the IXIC
may be getting stretched to the downside, yield may be getting
stretched to the upside.
(Terence Gabriel)
*****
FOR MONDAY'S LIVE MARKETS' POSTS PRIOR TO 0900 EST/1400 GMT
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(Terence Gabriel is a Reuters market analyst. The views
expressed are his own)