NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Is Flat Despite Rising Treasury Yields

Key Insights

• SP500 tests support at 4260 – 4280 as traders worry that Fed will raise rates again this year. 
• NASDAQ managed to stay flat amid rising demand for big tech stocks. 
• Dow Jones declined towards the 33,300 level. 

SP500

SP500 continues its attempts to settle below the support at 4260 – 4280 as traders stay focused on strong dollar and rising Treasury yields. Today’s PMI reports exceeded analyst expectations, which was bearish for major indices. Fed policy outlook is the key driver for markets, and encouraging reports increase the probability of another rate hike from the Fed. It is obvious that bond traders prepare for a rate hike, which has a negative impact on the equity markets. The rate-sensitive Utilities stocks were among the worst performers in SP500 today. Energy stocks have also suffered a sell-off amid a pullback in the oil markets.

If SP500 declines below the 4260 level, it will gain additional downside momentum and move towards the next support, which is located in the 4175 – 4200 range.

NASDAQ

NASDAQ is mostly flat in today’s trading session as tech stocks get some support despite the broader pullback. Big names like NVIDIA, Alphabet, and Amazon are among the best performers in the NASDAQ index today.

The nearest support level for NASDAQ is located in the 14,560 – 14,680 range. A move below 14,560 will open the way to the test of the support at 14,150 – 14,250.

Dow Jones

Dow Jones is losing ground as traders worry about a potenial rate hike from the Fed. The pullback is broad, and the majority of Dow Jones components are moving lower.

Dow Jones has recently settled below the support at 33,600 and is heading towards the next support level at 33,000 – 33,100. RSI remains in the moderate territory, so there is enough room to gain additional downside momentum.

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