As stock market unravels Monday, here’s the level the Nasdaq Composite needs to defend to avoid a correction

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The Nasdaq Composite was headed for a fifth straight decline on Monday, with a fall in the technology-laden index putting it in danger of falling into a correction for the first time since March of 2021.

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In final investigation, Nasdaq Composite Comp,
-2.37%
fell 2.3%, or 347 points, to 14,587. The index needs to stay above 14,451.69 to avoid a correction from its record close of November 19. A correction is usually defined by market technicians as a decline of 10% from the most recent peak.

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The Nasdaq Composite posted its biggest one-week drop since February last week, as bond yields continued to rise. puncture technical evaluation,

On Monday, the 10-year Treasury note TMUBMUSD10Y,
1.803%
According to Dow Jones market data, the yield is up around 1.8%, adding to the highs not seen since January 2020. Yield moves inversely to price.

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Yields are rising as investors expect tougher policy from the Federal Reserve and three interest rate hikes starting in March, possibly in 2022. Analysts at Goldman Sachs have predicted in a recent research note that there could be four hikes in interest rates this year.

Higher rates translate into higher power costs and could significantly weigh on rate-sensitive sectors of the market such as technology and growth-oriented assets?

The Nasdaq Composite last recorded a correction on March 8 and did not exit the correction until April 9.

Dow Jones Industrial Average DJIA,
-1.40%,
Meanwhile, the S&P 500 index SPX was down 500 points, or 1.4%,
-1.79%
There was a decline of 1.8% in Monday’s trade.

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