Nasdaq Plunges 3% Amid War in Ukraine
24 February 2022
Sentiment deteriorated sharply on Thursday as the Russian army has initiated a special military mission against Ukraine, targeting several significant military posts.
US stock markets cratered, losing 2-3%, while EU bourses were hit even harder, dropping 4-5%. The Nasdaq 100 index is now down 20% from its all-time highs, entering a bear market and erasing all gains since 2021.
"Stock markets were already hit and are now pricing in further military escalation in Ukraine. The selloff will therefore continue," Norbert Frey, head of portfolio management at Fuerst Fugger Privatbank, said in an email. "We expect volatility to rise in the coming weeks, which will require investors to have good nerves. As a result, we will see a flight into supposedly safe government bonds, gold, and, above all, cash – at least temporarily."
The following support could be found near 12,950 USD (the blue horizontal line), where April 2021 lows are seen. If that level does not hold, further selling can bring the index toward 12,300 USD.
On the upside, the Nasdaq 100 must rise above 14,000 USD (the red horizontal line) to stabilize.
However, it looks like more tough days are ahead, considering the military action in Ukraine, likely resulting in heightened volatility and further losses.