NASDAQ Index, SP500, Dow Jones Forecasts – Dow Jones Retreats As Unitedhealth Group Falls 4.2%

SP500

SP500 is losing ground as traders focus on rising Treasury yields. The yield of 2-year Treasuries moved towards the 5.00% level, while the yield of 10-year Treasuries settled above 4.60%. Traders are worried that Fed may be more hawkish than previously expected. From a big picture point of view, the yield of 10-year Treasuries moved from $3.86% at the start of the year to 4.60%, which is a major move that shows a big shift in Fed policy outlook. Today’s pullback is broad, and all market segments are under pressure. The pullback is led by energy and basic material stocks, which react to the sell-off in commodity markets.

Currently, SP500 is trying to settle below the support at 5270 – 5280. In case this attempt is successful, SP500 will head towards the next support level, which is located in the 5180 – 5190 range. RSI is in the moderate territory, and there is plenty of room to gain additional downside momentum in case the right catalysts emerge.

NASDAQ

NASDAQ pulls back as traders take some profits off the table near historic highs. Demand for AI-related stocks stays strong, so NASDAQ has managed to move away from session lows.

The technical picture remains unchanged as NASDAQ consolidates above the nearest support level, which is located in the 18,600 – 18,700 range.

Dow Jones

Dow Jones remains under significant pressure as Unitedhealth Group is down by 4.2%. The stock is losing round as investors worry about potential mismatch between rates and costs in Medicaid.  Shares of other health insurers have also found themselves under pressure in today’s trading session.

RSI is in the oversold territory, so the risks of a rebound are increasing. If Dow Jones settles below the 38,500 level, it will head towards the next support, which is located in the 37,700 – 37,800 range.

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