Nasdaq 100 Slides as Rate-Hike Bets Reprice Risk
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The Nasdaq 100 finished the week on a weaker footing as bond markets began pricing in a higher probability of additional rate hikes. Growth-heavy indices are particularly sensitive to shifts in rate expectations since higher yields compress valuation multiples on future earnings.
The move caught many desks off guard following weeks of relative calm, with volatility spiking into Friday's close. Index futures showed increased two-way flow as traders repositioned ahead of the weekend, unwilling to hold outsized directional exposure into next week's data calendar.
Watch for follow-through selling if upcoming inflation prints reinforce the hawkish repricing, or a relief bounce should incoming data undercut the rate-hike narrative.