NASDAQ Index, SP500, Dow Jones Analysis – NASDAQ Retreats As Treasury Yields Rise

Key Insights

• SP500 failed to settle above the important 4000 level. 
• NASDAQ moved lower as traders focused on rising Treasury yields. 
• Dow Jones tested the 20 EMA as financial stocks rallied amid hopes that regulators would contain the banking crisis. 

SP500

SP500 tested the key 4000 level but failed to develop sufficient upside momentum and pulled back.

First Citizens BancShares agreed to acquire Silicon Valley Bank, triggering a strong rally in financial stocks. Shares of the troubled First Republic Bank gained 10%, while big names like Bank of America and Citigroup were up by roughly 4%.

Energy stocks were among the best performers in the SP500 today as traders focused on the strong rally in the oil markets, which was caused by Kurdistan export halt.

Today, traders also focused on the Dallas Fed Manufacturing Index report. Dallas Fed Manufacturing Index declined from -13.5 in February to -15.7 in March, missing analyst expectations.

Meanwhile, Treasury yields moved higher as demand for safe-haven assets declined. The yield of 10-year Treasuries managed to climb back above the 3.50% level, while the yield of 2-year Treasuries tested the 4.00% level.

NASDAQ

NASDAQ pulled back below the 12,700 level as traders focused on rising Treasury yields. Alphabet, Meta, and Microsoft were among the biggest losers in the NASDAQ today, so the pullback was triggered by the sell-off in mega cap stocks.

From the technical point of view, NASDAQ failed to settle above the resistance at 12,750. The current pullback will have a good chance to gain additional momentum if Treasury yields continue to rebound.

Dow Jones

Dow Jones  is currently trying to settle above the 20 EMA at 32,485. In case this attempt is successful, Dow Jones will head towards the next resistance at the recent highs at 32,770.

Not surprisingly, JPMorgan and Goldman Sachs are among the biggest gainers in the Dow Jones index today. Microsoft and Apple are losing ground as traders take some profits off the table in tech stocks.

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