NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Pulls Back As Amgen Dives 9.6%

SP500 Pulls Back As Treasury Yields Rise

SP500 is losing ground as traders focus on rising Treasury yields and high oil prices.

Treasury yields moved higher as traders focused on rising risks of a rate hike at the next Fed meeting. According to FedWatch Tool, the probability of a rate hike is 60.4%. In my view, stock traders are nervous ahead of PPI and CPI data, which will be released on Thursday and Friday. In case PPI and CPI indicate that inflationary pressure is rising, stocks will find themselves under more pressure.

The yield of 2-year Treasuries climbed towards the 4.40% level, while the yield of 10-year Treasuries tested the 4.80% level. At this point, Bessent’s attempts to push yields lower did not yield serious results.

Oil prices tested new highs as Saudi Arabia confirmed that Houthis attacked its oil facilities. Brent oil made an attempt to settle above the $99.00 level, while WTI oil tested the $94.00 level. Rising oil prices raise inflation worries, which is bearish for SP500.

Not surprisingly, energy stocks were among the biggest gainers today as traders focused on the situation in the Middle East. Utilities stocks gained ground as demand for safe-haven assets increased. Healthcare and financial stocks were among the biggest losers in today’s trading session.

SP500 pulled back below the previous support at 7720 – 7730 and is trying to settle below the 50 MA at 7702. In case this attempt is successful, SP500 will head towards the support level, which is located in the 7615 – 7625 range.

On the upside, a move above the 7730 level will open the way to the test of the resistance level at 7805 – 7815.

NASDAQ Moves Lower As Traders Worry About Hawkish Fed

NASDAQ is losing some ground amid worries about a potential rate hike from the Fed. Amgen, which is down by -9.6%, is the worst performer in the NASDAQ index today. The stock suffered a sell-off as traders reacted to disappointing clinical trial results.

From the technical point of view, NASDAQ is trying to settle below the support level at 29,450 – 29,500. If NASDAQ manages to settle below the 29,450 level, it will head towards the next support level at 29,100 – 29,150. RSI is in the moderate territory, so there is plenty of room to gain momentum in case the right catalysts emerge.

On the upside, a move above the 29,700 level will open the way to the test of the resistance level at 29,900 – 29,950.

Dow Jones Tests New Lows As Amgen Dives

Dow Jones is under pressure due to the strong pullback of Amgen stock. Salesforce, which is down by -5%, is also among the biggest losers in the Dow Jones index today. The stock is moving lower as traders take some money off the table near multi-month highs.

Currently, Dow Jones is trying to settle below the support at 52,800 – 52,900. In case Dow Jones manages to settle below the 52,800 level, it will head towards the support level at 52,200 – 52,300.

On the upside, Dow Jones needs to climb back above the 53,000 level to have a chance to gain upside momentum in the near term. In this case, Dow Jones will move towards the resistance level at 53,300 – 53,400.

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