NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Moves Lower As Nvidia CEO Jensen Huang Resigns

SP500 Tests Resistance At 7620 – 7630

SP500 rebounded from session lows as traders focused on Nvidia‘s problems. Nvidia is down by -5% as Jensen Huang was outsted by Nvidia’s board as CEO. Huang will be replaced by Chief Financial Officer Colette Kress, who will serve as interim CEO.

Huang is one of the founders of the company, who is probably the key name in the whole AI industry. Not surprisingly, Nvidia’s stock found itself under strong pressure. It remains to be seen whether the company will be able to maintain its robust growth without Huang’s vision and leadership.

Super Micro Computer was the biggest loser in the SP500 index today. The stock pulled back as Bloomberg reported that the company was investigated by DOJ. According to the report, investigators are trying to find out whether companies linked to Alice Huang were smuggling Super Micro Computer products to China.

Put simply, Huang’s personal problems may mark a turning point for the AI industry. More companies could be investigated as U.S. attempts to maintain leadership in the AI race against China.

Today, traders also had a chance to take a look at the Initial Jobless Claims report. The report showed that 200,000 Americans filed for unemployment benefits in a week, compared to analyst forecast of 195,000. The report missed analyst expectations but showed that the job market remained in decent shape.

Existing Home Sales decreased by -5.5% month-over-month in October, while analysts expected that they would grow by +0.3%. The housing market remains under pressure amid high interest rates.

Treasury yields rallied as traders focused on recent changes in Fed policy outlook and prepared for the continuation of the rate hike cycle. The yield of 2-year Treasuries climbed above the 4.87% level, while the yield of 10-year Treasuries settled above 5.11%.

Oil prices gained 3% as Houthis continued to attack Saudi Aramco facilities. Higher oil prices may put additional pressure on major indices.

Energy stocks were among the biggest gainers today as traders focused on the rally in the oil markets. Basic materials stocks found themselves under strong pressure as traders reacted to the sell-off in precious metals markets.

Currently, SP500 is trying to settle above the resistance at 7620 – 7630. In case this attempt is successful, SP500 will move towards the next resistance level at 7715 – 7725. On the support side, a move below the 7600 level will push SP500 towards the support at 7550 – 7560.

NASDAQ Pulls Back As Nvidia Drops 5%

NASDAQ is losing ground as traders focus on the sell-off in Nvidia stock. Nvidia’s problems provided support to competitor Advanced Micro Devices,  which is up by +5% in today’s trading session.

If NASDAQ manages to settle above the 28,500 level, it will move towards the resistance at 28,800 – 28,850. On the support side, a successful test of the support at 27,950 – 28,000 will push NASDAQ towards the next support at 27,100 – 27,150.

Dow Jones Stays Range-Bound

Dow Jones is swinging between gains and losses as traders focus on Nvidia’s story. Alphabet, which is up by +2.5%, is the biggest gainer in the Dow Jones index today.

The nearest support level for Dow Jones is located in the 52,300 – 52,400 range. if Dow Jones pulls back below 52,300, it will head towards the 50 MA at 52,184. A move below the 50 MA will push Dow Jones towards the next support at 51,400 – 51,500.

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