NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Pulls Back As Meta’s Cloud Plans Put Pressure On Tech Stocks

SP500 Is Flat As Traders Focus On Job Market Data

SP500 is mostly flat as traders react to economic reports. ADP Employment Change report indicated that private businesses added 98,000 jobs in June, compared to analyst forecast of 113,000. Traders will also wait for the Non Farm Payrolls data, which will be released tomorrow. Analysts expect that Non Farm Payrolls report will indicate that U.S. economy added 110,000 jobs in June.

ISM Manufacturing PMI declined from 54.0 in May to 53.3 in June, while analysts expected that it would remain unchanged at 54.0. ISM Manufacturing Employment improved from 48.6 in May to 49.7 in June, exceeding the analyst estimate of 49.

Oil markets pulled back as President Trump hailed progress in Iran talks. WTI oil declined below the $68.50 level as traders bet that U.S. and Iran would reach a deal. Falling oil prices did not provide material support to SP500 in today’s trading session.

Treasury yields were mixed despite comments from Fed Chair Warsh, who signaled that Fed would not be excessively hawkish amid easing inflation risks.

Financial and consumer cyclical stocks were among the biggest gainers in today’s trading session. Industrial and tech stocks found themselves under material pressure.

In case SP500 stays above the 7500 level, it will head towards the nearest resistance level, which is located in the 7540 – 7550 range. A successful test of the resistance at 7540 – 7550 will open the way to the test of the next resistance at 7615 – 7625. RSI remains in the moderate territory, so there is plenty of room to gain momentum in the near term.

NASDAQ Retreats As Meta Plans To Build A Cloud Business

NASDAQ is losing ground as traders react to Meta‘s plans to build a cloud business in order to sell excess AI computing capacity. Meta stock is up by 10%. It should be noted that Meta’s move into the cloud business has triggered a sell-off in tech stocks. Micron and Intel, which were down by about 9.5%, were among the biggest losers in the NASDAQ index.

Strategy, which was up by +9.9%, was among the biggest gainers in the NASDAQ index today. The stock rallied as Bitcoin climbed back above the psychologically important $60,000 level.

The nearest support level for NASDAQ is located in the 29,800 – 29,850 range. If NASDAQ settles below the 29,800 level, it will head towards the next support level at 29,350 – 29,400.

Dow Jones Tests Historic Highs

Dow Jones  managed to gain some ground, supported by strong performance of Salesforce and Microsoft stocks. Dow Jones tested historic highs but lost momentum and pulled back below the 52,400 level.

In case Dow Jones stays below 52,400, it will head towards the 52,100 level. A move below the 52,100 level will open the way to the test of the 50 MA at 51,897. If Dow Jones declines below the 50 MA, it will head towards the support level at 51,600 – 51,700.

On the upside, Dow Jones needs to settle above the 52,700 level to gain additional upside momentum. In this case, Dow Jones will head towards the 53,000 level.

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