NASDAQ Index, SP500, Dow Jones Forecasts – Financial Sector Tremors Rattle Markets Today

Key Insights

• Fitch’s warning on potential downgrades rattles financial stocks, JPMorgan in the spotlight.
• Weak Chinese economic data strains Energy stocks, contributing to SP500’s dip.
• NVIDIA and Advanced Micro Devices move higher despite NASDAQ’s pullback.

SP500

SP500 is losing ground as traders react to the economic data and focus on the weakness in the Financial sector. Today, traders had a chance to take a look at the Retail Sales report, which showed that Retail Sales increased by 0.7% month-over-onth in July. Analysts expected that Retail Sales would grow by 0.4%. Treasury yields tested new highs as bond traders bet on a more hawkish Fed. The disappointing NAHB Housing Market index report put additional pressure on stocks. Financial stocks found themselves under significant pressure after Fitch warned that it could be forced to downgrade multiple banks, including JPMorgan. Meanwhile, the weak economic data from China put pressure on Energy stocks. There was nowhere to hide during today’s trading session as all market segments moved lower.

SP500 tests the support in the 4430 – 4450 range. In case SP500 manages to settle below this support level, it will head towards the next support at 4335 – 4350.

NASDAQ

NASDAQ has also moved lower as the appetite for risk decreased. Rising Treasury yields put additional pressure on tech stocks. It should be noted that NVIDIA and Advanced Micro Devices were among the gainers in the NASDAQ index today as traders remained bullish on the leading AI-related stocks.

NASDAQ settled below the 15,200 level and is trying to gain additional downside momentum. In case this attempt is successful, NASDAQ will head towards the next support at 14,560 – 14,680.

Dow Jones

Dow Jones tests support at 35,000 – 35,100 amid a broad pullback in the equity markets.

In case this test is successful, Dow Jones will move towards the next support level, which is located in the 34,500 – 34,600 range.

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