US stocks fell overnight led by the tech based NASDAQ which closed down -1.1% after the Fed minutes left further rate hikes on the table – no great surprise in our opinion, Jerome Powell et al must leave the door open for further hikes if inflation fails to fall into their target area. The NASDAQ has now fallen -2.2% over the last 2-days as the “Magnificent Seven” surrender some of the stellar gains of 2023. US bonds followed equities lower sending yields higher with the US 10-years challenging their October high in the process. We believe the Fed won’ hike rates in September but the November & December meetings will be data dependant as the Fed continues to balance inflation and economic health, the former being most important short term.
- In line with previous reports we believe the risk/reward has arrived to buy/accumulate US tech stocks into the current weakness.
MM is now neutral to bullish on US tech stocks short-term
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Tesla Inc (TSLA US) fell another -3.2% last night leading the US Big Tech names lower, the FAANG stocks have followed the MM roadmap to perfection over recent weeks which if it continues should see the group find a low and reverse higher sooner rather than later.
- Following the recent -25% correction we believe TSLA is in an accumulation zone.
MM likes TSLA around $US225
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