NASDAQ Weekly Market Pulse - With Focus On Interest Rates, Equity Markets See Dramatic Pull-Back, Led by Homebuilders

26 June 2013

The sell-off during the latter part of last week was driven by perceived hawkish Fed commentary and global deleveraging, as rate-sensitive corners of the market were down significantly. The NASDAQ Composite Index (IXIC) dropped 3.9%.

"The scrutiny of Fed communications around QE3 and China's cash crunch have brought volatility back into the market," said Dave Gedeon, Managing Director, NASDAQ OMX Global Indexes. "All asset classes were hit particularly hard in the past week due to fear that the Fed's actions will ultimately bring rates up and cause equities to fall. In addition, if China continues on a negative news trend, commodities will continue to be at risk."

LARGEST INDEX DECLINERS

TOP 5 EQUITY INDEX
DECLINERS:

6/18 - 6/25

PHLX HOUSING
SECTOR INDEX (HGX)

-8.98%

NASDAQ EM EUROPE
INDEX (NQEMEUR)

-8.37%

NASDAQ CHINA INDEX
(NQCN)

-8.16%

NASDAQ EMERGING
MARKETS INDEX (NQEM)

-6.97%

NASDAQ OMX GLOBAL
WATER INDEX
(GWATERL)

-6.80%

TOP 5 COMMODITY INDEX
DECLINERS:

6/18 - 6/25

PHLX GOLD/SILVER
SECTOR INDEX (XAU)

-13.06%

NASDAQ COMMODITY
PRECIOUS METALS INDEX
ER (NQCIPMER)

-7.23%

NASDAQ COMMODITY
GOLD INDEX ER
(NQCIGCER)

-6.72%

NASDAQ COMMODITY
NATURAL GAS INDEX ER
(NQCINGER)

-6.54%

NASDAQ COMMODITY
BRENT CRUDE INDEX ER
(NQCICBER)

-4.58%

  • The NASDAQ EM Europe Index (NQEMEU) (-8.37%) and NASDAQ China Index (NQCN) (-8.16%) were the biggest decliners overseas with interbank funding dominating the headlines. In addition, China reported softening manufacturing figures, which helped drive global concerns.

  • Gold and silver have fallen to 33-month lows on the uncertainty surrounding the timing of QE tapering and more concerns in China. The PHLX Gold/Silver Sector Index (XAU) has dropped 13.06% over the past five trading days.

  • Finally, homebuilders and housing stocks suffered steep losses on heightened worries about the impact of higher mortgage rates. The PHLX Housing Sector Index (HGX) fell 8.98% through yesterday's close.

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