NASDAQ Index, SP500, Dow Jones Analysis – Stocks Mixed As Oil Rallies

Key Insights

• SP500 tested the 4125 level but lost momentum and pulled back. 
• NASDAQ retreated as Tesla stock declined by more than 6%. 
• Dow Jones moved higher amid strong demand in the healthcare sector. 

SP500

SP500 made an attempt to settle above 4125 after the release of the PMI reports, which indicated that the manufacturing sector remained under pressure. Treasury yields moved lower as traders bet on a less hawkish Fed. This move was bullish for stocks, but lower Treasury yields were not the only catalyst that had a material impact on the SP500 today.

Traders also focused on the developments in the oil markets. WTI oil rallied above the $80 level after OPEC+ decided to cut production by 1.16 million bpd to support market stability. Higher energy prices boost the probability of a recession, which is bearish for stocks.

Not surprisingly, energy stocks are the best performers in the SP500 today. Marathon Oil, APA Corporation, and ConocoPhillips are up by more than 8%.

NASDAQ

NASDAQ pulled back below the 13,100 level as Tesla stock declined by more than 6%. The stock found itself under significant pressure after the company reported a modest growth in quarterly deliveries. Earlier, Tesla used aggressive price cuts to support demand. The report indicated that these measures did not have a big impact on the company’s sales.

From the technical point of view, traders are taking some profits off the table after a strong rally. NASDAQ needs to stay above the 13,000 level to have a chance to gain additional upside momentum in the near term.

Dow Jones

Dow Jones continues to move higher due to the strong performance of energy and healthcare stocks. UnitedHealth Group, Walgreens Boots Alliance, and Merck are up by 2-4% in today’s trading session.

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