NASDAQ Index, SP500, Dow Jones Forecasts – Dow Jones Pulls Back As 3M Dives 11.5%

Key Insights

• SP500 stays above the 4850 level as traders are not ready to sell stocks near record highs. 
• NASDAQ is mostly flat as demand for tech stocks remains strong. 
• Dow Jones pulled back due to the strong sell-off in 3M stock. 

SP500

SP500 is swinging between gains and losses as the index consolidates near record highs. Today, traders had a chance to take a look at the Richmond Fed Manufacturing Index report, which indicated that Richmond Fed Manufacturing Index declined from -11 in December to -15 in January. Treasury yields moved higher as traders bet on a less dovish Fed. U.S. dollar tested new highs. Interestingly, strong dollar and rising Treasury yields did not put any pressure on major indices. The general market sentiment remains bullish, and it looks that traders prepare for new highs.

RSI remains in the overbought territory, so the risks of a pullback are increasing. However, a period of consolidation may push RSI back into the moderate territory, which will be bullish for SP500.

NASDAQ

NASDAQ was mostly flat in today’s trading session. Demand for tech stocks remains strong as traders hope that AI will be a game-changer for the industry. Today’s trading was calm, and there were no notable gainers or losers in the NASDAQ index today.

From the technical point of view, NASDAQ needs to settle above the nearest resistance at 17,450 – 17,500 to continue the strong rally.

Dow Jones

Dow Jones pulled back as traders took some profits off the table after the recent move. 3M, which was down by 11.5%, was the biggest loser in the Dow Jones index today. The stock gained strong downside momentum after the company’s management presented a disappointing outlook for 2024.

If Dow Jones settles below the nearest support level at 37,750 – 37,800, it will head towards the next support at 37,400 – 37,500.

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