NASDAQ Index, SP500, Dow Jones Forecasts – Stocks Move Lower Amid Rising Geopolitical Tensions

SP500

SP500 is losing ground despite strong Retail Sales report, which showed that Retail Sales increased by 0.7% month-over-month in March. Retail Sales Ex Autos grew by 1.1% on a month-over-month basis, compared to analyst consensus of +0.4%. NAHB Housing Market Index remained unchanged at 51 in April, in line with the analyst consensus. Today, traders focused on the situation in the Middle East. Markets are waiting for Israel’s next moves after Iran’s attack. Treasury yields were moving higher, putting additional pressure on SP500. The yield of 2-year Treasuries tested the 5.00% level, while the yield of 10-year Treasuries settled above 4.60%. Rising tensions in the Middle East are bullish for oil prices, which could lead to higher inflation and force the Fed to be more hawkish. It should be noted that today’s pullback is broad, and all market segments are moving lower. The yield-sensitive real estate stocks and shares of tech companies are among the biggest losers in SP500 today.

The nearest support level for SP500 is located in the 5035 – 5050 range. If SP500 settles below 5035, it will head towards the next support at 4930 – 4950.

NASDAQ

NASDAQ tests new lows as traders sell tech stocks amid rising geopolitical tensions. Tesla, which is down by 5.3%, is among the biggest losers in the NASDAQ index today. According to recent reports, the company has decided to lay off more than 10% of its global workforce.

From the technical point of view, NASDAQ settled below the previous support at 18,000 – 18,050 and is moving towards the next support level at 17,450 – 17,500.

Dow Jones

Dow Jones is losing ground amid a broad pullback in the equity markets. The pullback is led by Salesforce, which is down by 6.9% in today’s trading session. The stock is under pressure as traders react to the reports indicating that Salesforce is in talks to buy Informatica.

A successful test of the support at 37,800 – 37,900 will open the way to the test of the next support level at 37,100 – 37,200.

For a look at all of today’s economic events, check out our economic calendar.