The US equity indexes dropped sharply by better-than-expected economic data which might reconsider the pause of the monetary tightening, pressured the E-mini S&P 500 by about minus 1.9%, and let the Nasdaq drop about 1.9% as well. The Dow Jones index decreased by about 1.5% in the New York trading session.

• The ISM PMI report showed with its raise that the economy seemingly remains strong despite the macro perspective’s pressure factors.
• The stronger-than-expected payroll report increased the odds of a higher terminal rate of about 5% in the next year, pressured the markets.
• Elsewhere, Tesla dropped about 6% due to warning rumors about output cuts for the Model Y in Shanghai while Chinese companies are slightly higher by hope for a better reopening of China’s economy.

The daily interval of the E-mini S&P 500 fell for the third consecutive session in the row by potential long liquidations and core selling around the Year’s developing VWAP due to the possible reconsideration of the rate path which pressured equity markets. The market may target the Quarter’s upper value extreme by the strong imbalanced behavior on the intraday session. The secondary target for sellers may be around the Quarter’s VWAP, depending on the further conclusions about the policy rate path

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