NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Dives 4% As Traders Rush For Exits After NFP Data

SP500 Retreats As Non Farm Payrolls Beat Estimates

SP500 is under strong pressure as traders react to the better-than-expected Non Farm Payrolls report. The report indicated that the U.S. economy added 172,000 jobs in May, exceeding the analyst estimate of 85,000. The previous report was revised from 115,000 to 179,000.

Unemployment Rate remained unchanged at 4.3% in May, in line with analyst estimates. Participation Rate was unchanged at 61.8%, while analysts expected that it would decrease to 61.7%.

The surprisingly strong jobs data changed Fed policy outlook. FedWatch Tool indicates that some traders are ready to bet that Fed would raise rates as soon as July.

Markets have also started to prepare for additional rate hikes. Put simply, traders expect that Fed will start the new rate hike cycle despite Trump’s calls for lower interest rates.

Treasury yields rallied as traders reacted to NFP data. The yield of 2-year Treasuries settled above the 4.16% level, while the yield of 10-year Treasuries moved towards the 4.54% level.

It should be noted that yields stay below recent highs, but market mood has changed as traders worry about a lengthy rate hike cycle.

Interestingly, consumer defensive, healthcare and real estate stocks gained ground in today’s trading session. Rising demand for safe-haven assets provided support to these sectors.

Not surprisingly, tech stocks were the biggest losers as the appetite for risk declined. Basic materials stocks have also found themselves under strong pressure as traders reacted to the sell-off in precious metals markets.

Currently, SP500 is trying to settle below the support at 7425 – 7435. In case this attempt is successful, SP500 will head towards the next support level, which is located in the 7350 – 7360 range.

NASDAQ Collapses As Traders Worry About Hawkish Fed

NASDAQ suffered a sell-off as traders rushed to take profits in tech stocks. Marvell Technology and Arm Holdings were the biggest losers in today’s trading session.

Strategy stock was down by -10% as Bitcoin declined below the psychologically important $60,000 level. Cryptocurrencies are especially sensitive to changes in Fed policy outlook.

NASDAQ attempts to settle below the support at 29,250 – 29,300. If NASDAQ manages to settle below the 29,250 level, it will move towards the next support at 28,800 – 28,850. It should be noted that RSI is in the oversold territory, so the risks of a rebound are rising.

On the upside, NASDAQ needs to settle back above the 29,500 level to gain upside momentum in the near term. In this case, NASDAQ will head towards the resistance level at 29,700 – 29,750.

Dow Jones Moves Lower As NVIDIA Dives 5.7%

Dow Jones is losing ground amid broad sell-off in the equity markets. NVIDIA, which is down by -5.7%, is the worst performer in the Dow Jones index today.

From the technical point of view, Dow Jones attempts to settle below the support at 51,000 – 51,100. If Dow Jones manages to settle below the 51,000 level, it will head towards the next support, which is located in the 50,400 – 50,500 range. A move below the 50,400 level will open the way to the test of the psychologically important 50,000 level.

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