GLOBAL MARKETS-Stocks fall on Omicron concerns before of the Fed meeting.
On Monday, global stock markets tumbled and the dollar rose as investors weighed new fears over the Omicron variant and a slew of central bank meetings this week.
The Federal Reserve of the United States is likely to announce a speedier wind-down of asset purchases, putting it one step closer to increasing interest rates. Over the following few years, the Fed’s policy-setting committee will revise its members’ rate forecasts.
The continued headline news Fears about the Omicron strain of COVID-19 weighed on markets, following British Prime Minister, Boris Johnson, warned of rapid increase of new cases. In addition, evidence starting to show a potential high risk of decrease vaccination protection.
The Nasdaq Composite Index is a stock market index that tracks the performance of the Nasdaq fell by 0.76 percent, 118.29 points. Investors are scrutinizing the prospect that the Fed may start raising rates in 2022, which has pushed the dollar higher ahead of the Fed future meetings.
The Nasdaq chart starting to show a trend breakdown potential and current news should easily push the Nasdaq more down as fear rising. Traders can take advantage of this weakness and short the Nasdaq 100 index at 16,052 with a short term target at 15,848. In order to protect the trade, traders might use a stop loss order at the 16,256 or above; depending on each trader risk tolerance.