Fed will not protect Nasdaq from falling
Growth companies that dominate the Nasdaq index are losing their appeal as long-term bond yields continue to rise. Against this backdrop, the Nasdaq lost another 2.7%, the Dow Jones 30 was down 0.4%, and the S&P500 maintained its intermediate position, retreating by 1.3%.
Simultaneously, the dollar continues to strengthen in pairs with safe-haven currencies, CHF and JPY. Meanwhile, risk-sensitive GBP, AUD and CAD have stabilised in very narrow ranges this week.
This uneven weakening of the stock markets and commodities means the Fed will not enact further policy easing, which causes Nasdaq stocks to underperform. Other developments might indeed turn out to be something of a repeat of the deflating dot-com bubble of 2000-2002 when the Nasdaq lost 83% of its peak compared to the 38% of the Dow Jones 30.
https://fxpro.news/daily-economic-events/fed-will-not-protect-nasdaq-from-falling-20210304/
