Market Suffers as Labor Data Spurs Rate Hike Worries; Netflix Stock Down

Market Suffers as Labor Data Spurs Rate Hike Worries; Netflix Stock Down

Investors witnessed a decline in the stock market on Thursday morning due to the release of robust labor data, which raised concerns about potential interest rate hikes by the Federal Reserve. This development has reignited worries about the impact such hikes could have on the overall economy.

The S&P 500, Dow Jones Industrial Average, and Nasdaq 100 all experienced losses, with the latter leading the downward trend. The S&P 500 saw a drop of approximately 1.3%, while the Dow Jones Industrial Average plummeted by as much as 500 points. The Nasdaq 100, known for its focus on technology companies, recorded a 1.5% decrease.

Yesterday, all three major stock market indices experienced losses following the release of unexpectedly hawkish minutes from the Fed's June meeting. The minutes revealed that some policymakers were hesitant to support a pause in interest rate hikes, with most favoring additional increases in 2023.

As a result, market analysts are now predicting a 95% likelihood of a rate hike during the Fed's July meeting, based on the CME FedWatch tool. This prediction aligns with recent data reports, released on Thursday, which indicate that the US labor market remains strong. Notably, the ADP private-sector payrolls report exceeded expectations.

Given the concerns that stock markets have previously faced regarding the potential negative impact of the Fed's rate hikes on the economy, investors eagerly await the release of the crucial June jobs report on Friday. This data will provide further insights into the state of the labor market and may have a significant impact on market sentiment.

After experiencing a decline in the market on Thursday, purchasers witnessed a decrease of 2.18% in the stock price of Netflix, an American subscription video on-demand over-the-top streaming service. As of the current moment, the NFLX-NASDAQ stock is being traded at a value of $436.5, signaling the formation of a double top pattern at higher levels.

Netflix stock price is forming bearish pattern; Source: Tradingview

Based on the data from TradingView, it can be observed that the stock price of Netflix (NFLX-NASDAQ) is currently displaying a mildly bearish pattern. This comes after encountering significant resistance within the $450 range. Presently, the bulls are making a cautious attempt to keep the NFLX-NASDAQ stock price above the 20-SMA (Simple Moving Average) in order to safeguard against a potential substantial sell-off.

Furthermore, there are bearish indications evident, with the RSI (Relative Strength Index) displaying a bearish divergence pattern, characterized by a series of lower highs. Should the stock price slip below the 20-SMA, the next plausible level of support might be found around the $415 zone.

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This information is for educational purposes only and does not constitute investment advice. No person should rely on it to make any investment. Investing carries risks, including the loss of capital. All opinions expressed are subject to change without notice. Past performance is not indicative of future results. Always seek the advice of a licensed investment professional before making any investment.