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NASDAQ Index, SP500, Dow Jones Analysis – Tech Stocks Pull Back As Treasury Yields Rise

By:
Vladimir Zernov
Published: Mar 28, 2023, 17:44 UTC

Energy stocks are moving higher as oil markets are testing weekly highs.

NASDAQ

In this article:

Key Insights

  • SP500 declined towards the 3965 level as tech stocks pulled back. 
  • NASDAQ found itself under material pressure as Treasury yields continued to rebound.
  • Dow Jones declined below the 32,400 level after an unsuccessful attempt to settle above the 20 EMA. 

SP500

SP500
SP500 280323 Daily Chart

SP500 pulled back towards the 3965 level as Treasury yields continued to rebound. The yield of 2-year Treasuries tested the 4.05% level, while the yield of 10-year Treasuries climbed above 3.55%.

First Republic Bank, which was down by 7%, was the worst performer in the SP500 today. Traders remain worried about the bank’s future. Tesla stock was down by 2.5% after safety regulators opened an investigation into seat belt issues.

It should be noted that today’s pullback is not broad. Utilities and Consumer Defensive stocks are moving higher as traders search for safe-haven assets. Energy stocks gained upside momentum as the strong rebound in the oil markets continued. Big oil stocks like Exxon Mobil and Chevron were up by more than 1%.

NASDAQ

NASDAQ
NASDAQ 280323 Daily Chart

NASDAQ pulled back below the 12,600 level as traders focused on rising Treasury yields, which was bearish for the yield-sensitive tech stocks. AMD  is down by 3% as traders continue to take profits after the recent rally.

From a big picture point of view, NASDAQ failed to settle above the strong resistance near 12,750, so traders may rush to take profits off the table amid rising Treasury yields. The risks of a strong pullback are increasing.

Dow Jones

Dow Jones
Dow Jones 280323 Daily Chart

Dow Jones made another attempt to settle above the 20 EMA but failed to develop sufficient upside momentum and pulled back below the 32,400 level. American Express and Goldman Sachs were among the biggest losers in the Dow Jones index today as traders remained worried about the health of the banking sector.

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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