| The Federal Reserve (Fed) has raised interest rates 10 times since March 2022. The target range for the federal funds rate is currently 5.00% to 5.25%. The probability of a rate hike in the next meeting is low, at 18.6%. However, there have been instances in the past where the Fed has surprised markets by raising rates even when the probability of a rate hike was low. If the Fed does surprise markets by raising rates, it could lead to a sell-off in the markets. The Nasdaq future could decline by as much as 5%. Here is my opinion and forecast for where the Nasdaq future might decline to, should the market be surprised by an unexpected rate hike: I believe that the Nasdaq future could decline by as much as 8% within the next few weeks, if the market is surprised by an unexpected rate hike. This is because higher interest rates can make it more expensive for businesses to borrow money, which can lead to lower earnings and stock prices. The Nasdaq is a technology-heavy index, and technology stocks are particularly sensitive to interest rate changes. It is important to note that this is just my opinion and forecast. The actual decline in the Nasdaq future could be more or less than 5%. The market will react to the Fed's decision in a variety of ways, and it is impossible to predict with certainty how the market will move. Follow ForexLive.com for additional views. |
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