NASDAQ Index, SP500, Dow Jones Forecasts – Stocks Pull Back As Traders Reduce Risks Ahead Of Inflation Reports

SP500

SP500 is losing ground as traders take some profits off the table ahead of tomorrow’s inflation reports. Analysts expect that Inflation Rate increased from 3.2% in February to 3.4% in March. Core Inflation Rate is projected to decline from 3.8% to 3.7%. The report will have a major impact on Fed policy outlook. In case Core Inflation Rate does not decline, Treasury yields will move higher, putting additional pressure on stocks. Interestingly, Treasury yields are moving lower in today’s trading session. However, this move did not provide any support to SP500.

Currently, SP500 is trying to settle below the support at 5180 – 5190. In case this attempt is successful, SP500 will move towards the next support level at 5100 – 5110.

NASDAQ

NASDAQ is losing ground as traders reduce their positions in tech stocks ahead of the key inflation data. NVIDIA, which is down by 3.3%, is among the biggest losers in the NASDAQ index today. The stock continues to move away from historic highs as traders take profits after the major rally. The continuation of the pullback in NVIDIA stock may trigger a broader pullback and push NASDAQ to new lows.

The nearest support level for NASDAQ is located in the 18,000 – 18,050 range. If NASDAQ declines below the 18,000 level, it will head towards the next support at 17,450 – 17,500. RSI is in the moderate territory, and there is plenty of room to gain additional downside momentum in case the right catalysts emerge.

Dow Jones

Dow Jones is moving lower amid a broad pullback in the equity markets. Cisco is the only notable gainer in the Dow Jones index today. The stock gained 3.1% as Morgan Stanley resumed coverage with a target price of $58.

From the technical point of view, Dow Jones needs to settle below the support at 38,500 – 38,550 to gain additional downside momentum.

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