Tech Stocks Slip Ahead of Jackson Hole – AMZN On Watch

Amazon Stocks Slide From HighsShares in Amazon are trading a little higher ahead of the US open today. Despite the uptick, the stock is sitting around 9% down off the YTD highs following the recent correction. The move lower comes amidst a pullback in mega-cap tech stocks recently. A bumper set of Q2 earnings from NVIDIA earlier in the week helped bolster sentiment. However, hawkish Fed commentary into the back end of the week and a fresh rise in US yields has seen tech stocks coming back under pressure.Powell on Watch for Tech StocksLooking ahead today, the main focus will be on Fed chairman Powell who speaks at the bank’s Jackson Hole Symposium. Expectations are split ahead of the event. However, on the back of a hawkish set of FOMC minutes last week and further hawkish Fed comments this week, hawkish risks are well noted. USD is trading higher ahead of the event, perhaps signalling the market’s anticipated outcome. If Powell does reaffirm recent Fed hawkishness, signalling a further hike, this will likely see Amazon shares coming under fresh pressure near term, driving the correction deeper. However, such a pullback might well provide a good opportunity for longer-term buyers given the view that even if the Fed does hike one more time this will more than likely be the final hike for a while.Technical ViewsAmazonThe correction lower in Amazon has seen the stock breaking down below the 137.81 level but, for now, holding a test of the bull channel lows. While the channel holds, the focus is on a move back above 137.81. Should we break the channel lows, however, the focus will turn to a test of the 123.79 level next.