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Nasdaq 100 hits one-month highs after Jerome Powell's speech

  • The Nasdaq 100 hit a low of 18,103 in the American session, then rebounded to 18,276, a new high since April 12.
  • Jerome Powell, Chairman of the Federal Reserve, declared that his confidence that inflation will go down again is lower than it was.

After the publication of the US Producer Price Index (PPI) data, which was higher than expected in its monthly reading, the Nasdaq 100 established a daily minimum at 18,103, very close to the 18,093, bottom of the session from May 10. The American session opened lower, although the index later reached a one-month high of 18,276. Currently, the Nasdaq 100 remains wavering below that level.

Jerome Powell observes improvement in the US economy but does not trust a quick drop in inflation

During the Annual General Meeting of the Association of Foreign Banks in Amsterdam, Jerome Powell, Chairman of the Federal Reserve, mentioned that the US economy has a strong labor market and expects continued GDP growth of 2.0% or higher. He noted that consumer spending and business investment remain strong. On the other hand, the president pointed out that his confidence regarding a drop in inflation is not as high as before and that rates should be maintained at the current level for longer.

Technical levels on the Nasdaq

We see short-term support at 18,100, confluence with the May 10 pivot point. The closest resistance is at 18,276, today's session high. If we break this level, the next resistance is at 18,334, the April 11 session high.

Nasdaq 100 15-minute chart

Source: Fx Street

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