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NASDAQ Index, SP500, Dow Jones Analysis – Stocks Rebound After Initial Sell-Off

By:
Vladimir Zernov

Traders used the pullback as an opportunity to buy stocks at lower prices.

NASDAQ

In this article:

Key Insights

  • SP500 moved back towards the 3950 level despite worries about the health of the banking sector. 
  • NASDAQ remained stuck below the key resistance at 12,750.
  • Dow Jones climbed back above the 32,000 level. 

SP500

SP500
SP500 240323 Daily Chart

SP500 moved away from session lows as traders bet that regulators would be able to contain the banking crisis. The better-than-expected PMI reports provided additional support to stocks.

Utilities and Consumer Defensive stocks were among the best performers today, which indicated that traders were searching for safe-haven assets.

Today, traders worried that Deutsche Bank may be the next bank to fall in Europe. These worries were triggered by the sudden jump in the cost of insuring against the risk of default of the troubled bank. However, Deutsche Bank shares managed to rebound from session lows as the market bet that ECB will provide support if necessary.

In the U.S., the shares of First Republic Bank were down by roughly 1%, which can be viewed as stabilization after the major sell-off. Shares of leading banks like Citigroup and JPMorgan were under pressure as traders reacted to the Deutsche Bank story. In the near term, the developments in the banking sector will remain the key catalyst for SP500 and other major indices.

NASDAQ

NASDAQ
NASDAQ 240323 Daily Chart

NASDAQ is facing strong resistance near the 12,750 level. While the recent pullback in Treasury yields provides material support to the yield-sensitive tech stocks, NASDAQ needs additional catalysts to gain upside momentum.

Activision Blizzard is the biggest gainer in the NASDAQ today. The stock gained strong upside momentum after UK antitrust body concluded that the deal between Activision Blizzard and Microsoft would not reduce competition.

Dow Jones

Dow Jones
Dow Jones 240323 Daily Chart

Dow Jones moved back above the 32,000 level as major indices rebounded from session lows. The majority of Dow Jones components managed to gain some ground today, but financial stocks like American Express, JPMorgan, and Goldman Sachs remained under pressure.

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

About the Author

Vladimir is an independent trader and analyst with over 10 years of experience in the financial markets. He is a specialist in stocks, futures, Forex, indices, and commodities areas using long-term positional trading and swing trading.

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