The Nasdaq has erased its earlier losses to trade near flat during Chair Powell’s press conference, while the S&P 500 remains marginally lower by 0.14%, reflecting divergent sectoral reactions to the Fed's messaging. The recovery in the Nasdaq suggests improved risk appetite in growth and tech-heavy equities, likely supported by Powell’s tone on policy restraint or inflation progress, which eases near-term rate hike concerns. This divergence highlights the sensitivity of rate-duration stocks in the NDX to shifts in monetary policy expectations, compared to the more broad-based and value-influenced S&P 500. The key transmission channel is the reassessment of forward rate differentials and real yields impacting equity discount rates. Traders will watch the next CPI release for confirmation on inflation trajectory, which will influence whether the Fed’s current stance holds or prompts renewed tightening bias.
THE NASDAQ HAS RECOVERED FROM ITS DECLINE TO HOVER NEAR FLAT DURING THE FED'S PRESS CONFERENCE, WHILE THE S&P 500 SITS 0.14% LOWER AS POWELL ADDRESSES REPORTERS.
About NDX
The Nasdaq-100 (NDX) is the US large-cap tech benchmark. NDX is more sensitive to rate decisions than SPX because of longer-duration cash flows, and heavily concentrated in Tech/Comms names — mega-cap earnings season dominates price action.
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