NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Moves Higher As Micron Gains 9.5%

SP500 Is Stuck Near Support At 6940 – 6950

SP500 pulled back from session highs as traders reacted to job market data. The Non Farm Payrolls report showed that U.S. economy created 130,000 jobs, compared to analyst forecast of 70,000. The report exceeded analyst estimates, indicating that U.S. job market remained in decent shape. The previous report was revised from 50,000 to 48,000, which was a minor revision.

Unemployment Rate decreased from 4.4% in December to 4.3% in January, compared to analyst consensus of 4.4%. Participation Rate grew from 62.4% to 62.5%, while Average Hourly Earnings increased by +0.4%.

The yield of 2-year Treasuries climbed above the 3.50% level as bond traders reacted to job market reports. Bond traders were forced to reduce their bets on dovish Fed.

FedWatch Tool indicates that there’s a 92.1% probability that Fed will keep interest rates unchanged at the next meeting in March. The first rate cut is expected in June as traders bet that new Fed Chair will start with a cut to please President Trump.

The hawkish Fed policy outlook served as a negative catalyst for SP500, which moved away from session highs despite strong job market data.

Energy stocks were among the biggest gainers today as traders focused on rising oil markets. Oil prices are moving higher as the U.S. may send a second aircraft carrier to the Middle East.

Basic materials stocks have also gained strong upside momentum amid rally in precious metals markets. Financial stocks declined as traders remained worried about the potential disruption of financial companies’ business models by AI startups.

SP500 has already made several attempts to settle below the support at 6940 – 6950. If SP500 manages to settle below the 6940 level, it will get to the test of the 50 MA at 6924. In case SP500 declines below the 50 MA, it will head towards the next support level at 6870 – 6880.

NASDAQ Is Volatile As Traders Focus On NFP Data

NASDAQ gained some ground as traders reacted to jobs reports and focused on AI-related worries.

Shopify, which is down by 8.2%, is the worst performer in the NASDAQ index today. The stock suffered a sell-off as traders reacted to the company’s earnings report.

The report beat analysts estimates on both earnings and revenue, but guidance was below analyst expectations. From a big picture point of view, the market is sceptical of software stocks and expects that their margins would compress due to competition from AI.

Micron gained 9.5% as Morgan Stanley raised its price target to $450 per share. The stock has already gained more than 40% since the start of the year.

Dow Jones Pulled Back As Financial Stocks Declined

Dow Jones is losing some ground amid pullback in the financial sector. AI-related worries continue to put pressure on major stocks in this market segment.

IBM, which was down by 5.8%, was the worst performer in the Dow Jones index today.

Salesforce has also found itself under strong pressure amid worries about the fate of software stocks. It should be noted that Salesforce stock is already down by 30% year-to-date.

From the technical point of view, Dow Jones made an attempt to settle above the resistance level at 50,100- 50,200 but lost momentum and pulled back. In case Dow Jones declines below the 49,800 level, it will head towards the nearest support, which is located in the 49,500 – 49,600 range.

RSI is in the moderate territory, and there is plenty of room to gain momentum in the near term. On the upside, a move above 50,200 will push Dow Jones towards recent highs near the 50,500 level.

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