Stocks tumble while ‘fear index’ surges!

September 04, 2020 11:00

Global stock markets posted heavy losses in US and Asia session trading with the Dow Jones 30 dropping more than 1,000 points and the S&P 500 index falling to its lowest level since June. Tech shares fell the most after a huge rotation from the sector which is currently showing some of the highest valuations ever with the Nasdaq 100 falling nearly 5% in a day.

Did you know that you can speculate on the price direction of global stock market indices using Contracts for Difference (CFDs)? This allows you to potentially profit from both rising and falling markets. Get started with a free demo trading account today!

Shares in Apple were the worst affected of all the major FAANG stocks, dropping more than 8%. Since 23 March, the S&P 500 technology sector has surged around 70% higher leading to many experts warning of excessive valuations.

The CBOE Volatility Index, known as Wall Street's 'fear gauge', surged to its highest level since June. The index is tradable via CFDs on the ProShares Short VIX Short-Term Futures ETF from the Admiral Markets trading platform.

While many analysts are warning of much more further downside in stock markets, many believe this is just a healthy correction. From a short-term perspective, all eyes will be on today's US Non-Farm Payroll news report at 1.30 pm BST where the market is expecting a fall in the unemployment rate. How will you be trading it?

How to trade the Nasdaq 100 index with Admiral Markets UK Ltd

If you are feeling bullish or bearish on the future of the Nasdaq 100 stock market index which tracks the largest 100 technology shares on the Nasdaq stock exchange, you can speculate on its price direction using CFDs. To get started, follow these five simple steps:

  1. Log in to your existing Admiral Markets trading account, or open a live or demo trading account in just a few minutes.
  2. Click Trade on your chosen account which will direct you to the Admiral Markets MetaTrader Web Platform.
  3. Type in Nasdaq Inc at the bottom of the Market Watch search box and then drag the symbol onto the chart.
  4. Use the one-click trading feature on the chart or right-click on select Trading -> New Order.
  5. Choose your entry, stop loss and target levels and position size (volume) and then confirm the trade.

Source: Admiral Markets MetaTrader 5 Web, #NDAQ, Weekly - Data range: March 23, 2014, to September 4, 2020, performed on September 4, 2020, at 7:06 am BST. Please note: Past performance is not a reliable indicator of future results.

Did you know that you can open a free demo trading account so you can test your trade ideas and theories regarding the price direction of thousands of markets in a virtual trading environment? Open your free account today by clicking on the banner below and receive free access to Premium Analytic tools and more!


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