NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Pulls Back Ahead Of NVIDIA’s Earnings Report

Vladimir Zernov
Published: May 22, 2024, 19:36 GMT+00:00

Key Points:

  • SP500 moved below the 5300 level as FOMC Minutes showed that some Fed members remained hawkish.
  • NASDAQ declined as traders reduced their risks ahead of the key earnings report from NVIDIA.
  • Dow Jones made an attempt to settle below the 39,600 level.
NASDAQ Index, SP500, Dow Jones Forecasts

In this article:


SP500 220524 4h Chart

SP500 pulls back as traders react to FOMC Minutes, which indicated that some Fed members were ready to raise rates if neccessary. Importantly, the Minutes showed that some Fed officials were worried that high interest rates may be having smaller effects than in the past. As a result, the longer-run equilibrium interest rates may be higher than previously thought. Most likely, today’s pullback was driven by profit-taking. Traders were waiting for an excuse to sell their positions, and FOMC Minutes served as the perfect catalyst. Today, traders also had a chance to take a look at the Existing Home Sales reprot for April. The report indicated that Existing Home Sales declined by 1.9% month-over-month, compared to analyst consensus of +0.5%. This report did not have a material impact on stock market dynamics.

In case SP500 settles below the 5300 level, it will move towards the nearest support, which is located in the 5270 – 5280 range.


NASDAQ 220524 4h Chart

NASDAQ is losing ground ahead of NVIDIA‘s earnings report, which will be released today, after market close. NVIDIA is down by 1.2% in today’s trading session as traders take some profits off the table ahead of the report. NVIDIA’s report will likely have a major impact on NASDAQ dynamics as it will impact market sentiment for all AI-related stocks.

In case NASDAQ settles back below the 18,600 level, it will move towards the 50 MA at 18,496. A move below the 50 MA will open the way to the test of the support at 18,300 – 18,400.

Dow Jones

Dow Jones
Dow Jones 220524 4h Chart

Dow Jones is losing ground amid a broad pullback in the equity markets. The pullback is broad, and most Dow Jones components are losing ground in today’s trading session.

In case Dow Jones settles below the 39,500 level, it will move towards the nearest material support level, which is located in the 39,000 – 39,100 range.

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

About the Author

Vladimir is an independent trader and analyst with over 10 years of experience in the financial markets. He is a specialist in stocks, futures, Forex, indices, and commodities areas using long-term positional trading and swing trading.

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