NASDAQ Index, SP500, Dow Jones Analysis – Stocks Pull Back Ahead Of Inflation Data

Key Insights

• SP500 settled near the 4500 level after an unsuccessful attempt to get below the 4460 level. 
• NASDAQ remains under pressure as traders continue to take profits in AI-related stocks. 
• Dow Jones remains range-bound as traders wait for catalysts. 

SP500

SP500 remained stuck near the 4500 level as traders prepared for U.S. inflation reports, which will be released tomorrow. Analysts expect that Inflation Rate increased from 3% in June to 3.3% in July, while Core Inflation Rate remained unchanged at 4.8%. Today’s pullback is not strong as SP500 managed to rebound from session lows. Energy stocks were among the best performers in the SP500 as traders focused on the strong rally in natural gas markets. In addition, WTI oil tested multi-month highs.

In case SP500 settles below the 4500 level, it will move towards the support at 4430 – 4450. On the upside, SP500 must climb above the 50 MA at 4535 to gain positive momentum in the near term.

NASDAQ

NASDAQ moved lower as tech stocks remained under pressure. Traders continue to take profits in AI-related stocks as they wait for new catalysts. NVIDIA and Advanced Micro Devices were among the biggest losers in the NASDAQ index today.

NASDAQ is trying to settle below the support in the 15,200 – 15,300 range. If this attempt is successful, NASDAQ will head towards the next support at 14,560 – 14,680.

Dow Jones

Dow Jones remains stuck in a tight range between the support at 35,000 and the resistance at 35,550. Traders are not ready for big moves ahead of the key U.S. inflation data, which will likely have a major impact on market dynamics.

From the technical point of view, trading will stay choppy until Dow Jones manages to get out of the current range.

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