What Does NASDAQ Strength Mean for Markets?

As one of the biggest stock exchanges in the U.S., and the world, NASDAQ is a very important and global stock trade. With over 3,000 companies indexed, a lot is at stake for the economy with its performance. Ultimately, that also means the strength of it heavily relies on other markets and how inflation impacts that.

Where does a powerful NASDAQ stand in the state of the stock market?

On this episode of Untamed Ethos, host Dr. Joshua Wilson, who is also the founder of United Ethos Wealth Advisors, discusses stocks and NASDAQ, the outlook for the market, and the looming interest rate increase with Russell Rhoads, Clinical Associate Professor at Indiana University Kelley School of Business.

With inflation still high but on a downward trend, the state of interest rates are still unpredictable with a hike more likely than not. And it just so happened that on May 3, the Fed raised interest rates to the highest it’s been in 16 years – marking the 10th time this year the Fed has hiked the rate.

Rhoads predicted that no cut was in sight and stated, “I think the worst is behind us as far as stocks go. The stock market discounts the future quite well and I think the stock market is looking, you know, six to nine months out into the future, which is by just about any measure a time where they’re not going to be raising interest rates anymore you know. If that changes my attitude about a lot of things would change, but you know the last I checked the next Fed meeting, we’re looking at a quarter point and then the Futures markets are basically discounting on no movement for most of the year and maybe even the 25 basis point cut in December,” said Rhoads.

He added, “I tend to just go with the numbers and not have an opinion, but I have a hard time thinking — a hard time believing — that we’re going to get a rate cut in 2023. So, that’s a place where I disagree somewhat with the Futures markets.”

Dr. Wilson and Rhoads also explored the topics of …

● How current events affect market volatility

● Where the state of the stock market lies

● Rhoads’ prediction on the outlook of the stocks in the coming years

“2022 was a very bad year and we’re not due for another very bad year till 2029-2030 hopefully … The really bad years come every five to 10 years or so, so when I say 2029- 2030, I’m talking about you know six, seven years from now,” said Rhoads.

Russell Rhoads is a Clinical Associate Professor at Indiana University Kelley School of Business. He is experienced in behavioral finance, financial markets, cryptocurrency, and market volatility. Rhoads received his Ph. D from Oklahoma State University and is a director of research at Director of Research for United Ethos Wealth Partners.

Article written by Alexandra Simon