NASDAQ Index, SP500, Dow Jones Analysis – Stocks Pull Back As Treasury Yields Test New Highs

Key Insights

• SP500 made an attempt to settle below the 4400 level as Treasury yields tested new highs. 
• NASDAQ tested the 15,000 level as traders reacted to the job market reports. 
• Dow Jones made an attempt to get below the support at 33,785.

SP500

SP500 rebounded from session lows but remains under pressure as traders focus on rising Treasury yields. The yield of 2-year Treasuries settled above the 5.00% level, while the yield of 10-year Treasuries moved above 4.00%. Today, traders also focused on the ADP Employment Change report, which showed that private businesses added 497,000 jobs in June. JOLTs Job Openings missed expectations, while ISM Services PMI report indicated that the services sector remained in a good shape. From a big picture point of view, traders are worried that Fed’s additional rate hike will put too much pressure on the economy.

SP500 settled below the 50 MA at 4410. In case SP500 stays below this level, it will move towards the support area in the 4335 – 4350 range.

NASDAQ

NASDAQ has also moved lower due to rising Treasury yields. Traders continue to take profits near yearly highs. At this point, it looks that NASDAQ will need material catalysts to gain sustainable upside momentum.

Currently, NASDAQ is trying to settle below the 50 MA at 15,055. In case this attempt is successful, NASDAQ will head towards the next support area in the 14,560 – 14,680 range. The 200 MA is located near the 14,680 level, so NASDAQ will likely get strong support in this area.

Dow Jones

Dow Jones made an attempt to settle below the 33,785 level amid a broad sell-off in the equity markets. The pullback was broad, and Microsoft was the only stock in the Dow Jones index that managed to move higher in today’s trading session.

If Dow Jones settles below the support in the 33,785 – 33,875 area, it will move towards the next support at 33,500 – 33,600. It should be noted that Dow Jones may also get some support at the 200 MA at 33,730.

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