NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Dives As Meta Drops 8%

SP500 Retreats As Tech Stocks Fall

SP500 is losing ground as traders focus on Meta‘s plans to boost spending to $135 billion – $145 billion in 2026. The company has also reported as much as $825 billion in future spending commitments. Traders are worried that high AI spending will put pressure on finances of tech companies and push inflation higher, forcing Fed to be more hawkish.

Interestingly, Treasury yields are under strong pressure as Treasuries regained their safe-haven status. Traders rushed to buy bonds to protect themselves from the sell-off in the equity markets. The yield of 2-year Treasuries declined towards the 4.63% level, while the yield of 10-year Treasuries settled below 4.95%.

Traders also focus on the situation in Saudi Arabia. The U.S. ordered some diplomats and their families to leave the country. Brent oil prices gained 3% as traders prepared for additional escalation in the Middle East. Some analysts believe that U.S. and Israel will soon restart the military operation against Iran. In such a scenario, oil prices will rally, putting material pressure on stocks.

Traders also had a chance to take a look at the Initial Jobless Claims report. The report showed that 194,000 Americans filed for unemployment benefits in a week, compared to analyst consensus of 200,000. The report did not have a material impact on market dynamics as traders focused on Meta’s spending plans.

Consumer defensive stocks were among the biggest gainers today as demand for safe-haven assets increased. Utilities and real estate stocks moved higher as traders reacted to the strong pullback in Treasury yields. Tech stocks found themselves under pressure amid worries about AI spending. Basic materials stocks moved lower amid sell-off in precious metals markets.

The nearest support level for SP500 is located in the 7615 – 7625 range. In case SP500 manages to settle below the 7615 level, it will head towards the next support at 7515 – 7525 range. RSI remains in the moderate territory, so there is enough room to gain momentum in the near term.

NASDAQ Tests New Lows As Traders Focus On Meta’s AI Spending Plans

NASDAQ suffered a sell-off as traders rushed to sell AI-related stocks after Meta’s report. Moderna, which was down by -25%, was the biggest loser in the NASDAQ index today. The stock tanked after a leak of cancer vaccine data.

NASDAQ settled below the support at 29,250 – 29,300 and is trying to settle below the 29,000 level. In case this attempt is successful, NASDAQ will head towards the next support, which is located in the 28,750 – 28,800 range.

Dow Jones Remains Stuck Near Resistance At 52,800 – 52,900

Dow Jones made an attempt to settle above the resistance level at 52,800 – 52,900 amid rising demand for defensive sectors. Procter & Gamble, which was up by +6%, was the biggest gainer in the Dow Jones index today. The stock rallied as traders reacted to the better-than-expected earnings report.

In case Dow Jones manages to settle above the 52,900 level, it will head towards the next resistance level at 53,600 – 53,700. On the support side, a move below the 52,800 level will push Dow Jones towards the support at 52,300 – 52,400.

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