The Nasdaq recouped some losses in hope of a turnaround in the Fed’s tightening cycle. Bad news is good news these days. Signs of a slowdown in the world’s largest economy would cool expectations of sustained rate hikes by the central bank. A dovish hike from the Bank of Canada may feed hopes that the Fed could be nearing the pivot point. A retreat in Treasury yields could divert more liquidity into riskier assets. Should investors’ risk mood make its way back, growth-sensitive tech names would be the first beneficiaries. Until then, 12000 is a key hurdle and caution could drive the index to the psychological level of 10000.
