NASDAQ Index, SP500, Dow Jones Analysis – Stocks Retreat From Session Highs As Regional Banks Fall

Key Insights

• SP500 failed to settle above the 4000 level. 
• NASDAQ tested the major resistance level amid strong demand for tech stocks. 
• Dow Jones faced resistance at the 20 EMA and pulled back. 

SP500

SP500 pulled back towards 3960 after an unsuccessful attempt to settle above the 4000 level. Today, traders focused on Initial Jobless Claims and New Home Sales reports.

Intial Jobless Claims report indicated that 192,000 Americans filed for unemployment benefits in a week, while New Home Sales grew by 1.1% month-over-month in February. The strong economic data provided material support to stocks at the start of the trading session.

However, it looks that traders remain worried about the potential crisis in the regional banks sector. Comerica, First Republic Bank and Zions Bancorporation are the biggest losers in the SP500 today. Energy stocks are also losing ground despite the rebound in the oil markets.

Netflix  jumped 8% amid a strong rally in the media sector. It looks that the potential ban of TikTok served as the main catalyst for the rally.

NASDAQ

NASDAQ continued its attempts to settle above the 12,750 level amid strong demand for tech stocks. The recent changes in Fed policy outlook continue to provide support to the yield-sensitive tech stocks. Traders bet that the peak rate may have already been reached, which is bullish for NASDAQ.

Dow Jones

Dow Jones faced strong resistance at the 20 EMA at 32,500 and pulled back below the 32,200 level.  Microsoft and Intel were the best performers in the Dow Jones today amid strong demand for tech stocks. Interestingly, there were no notable losers today. The nearest significant support level for Dow Jones is located at 32,000. If Dow Jones declines below this level, it will move towards the next support at 31,800.

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