NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Pulls Back As Sandisk Dives 6.5%

SP500 Moves Lower As U.S. Unveils Iran Plan

SP500 is losing some ground as traders focus on geopolitical developments. U.S. has unveiled its plan on Iran. The plan was presented by Treasury Secretary Scott Bessent.

Bessent said that any country doing business with Iran could face U.S. sanctions. He added that President Trump would talk to global leaders and request to cease their interactions with Iran.

Oil prices moved lower as traders reacted to Bessent’s words. The key question is whether U.S. is ready to target China, which is the biggest buyer of Iranian oil. Such a move could trigger another round of U.S. – China trade war, which will be bearish for SP500. At this point, traders do not believe that a trade war against China is the base-case scenario.

Treasury yields moved lower amid reports indicating that the Treasury could use the $950 billion General Account to fund bond buybacks. The yield of 2-year Treasuries moved bleow the 4.24% level, while the yield of 10-year Treasuries settled near 4.70%.

Consumer defensive stocks were among the biggest gainers today as demand for safe-haven assets increased. Utilities and real estate stocks have also moved higher as traders focused on falling Treasury yields. Tech stocks were among the biggest losers today.

If SP500 manages to settle below the 7650 level, it will head towards the nearest support, which is located in the 7615 – 7625 range. A successful test of this level will open the way to the test of the next support at 7525 – 7535. RSI is in the moderate territory, so there is plenty of room to gain momentum in case the right catalysts emerge.

NASDAQ Tests New Lows As Traders Sell AI Stocks

NASDAQ is losing ground as traders sell AI-related stocks. Sandisk, which is down by -6.5%, is the biggest loser in the NASDAQ index today. Seagate and Micron have also found themselves under material pressure in today’s trading session. From a big picture point of view, traders continue to take some money off the table in AI stocks.

Currently, NASDAQ is trying to settle below the support level at 29,100 – 29,150. In case NASDAQ manages to settle below the 29,100 level, it will head towards the next support, which is located in the 28,700 – 28,750 range.

On the upside, a move above the 29,150 level will push NASDAQ towards the nearest resistance level at 29,450 – 29,500. If NASDAQ moves above the 29,500 level, it will head towards the 50 MA at 29,663.

Dow Jones Tests Resistance At 53,300 – 53,400

Dow Jones  gained ground amid rising demand for defensive sectors. Walmart, which was up by +2.4%, was among the biggest gainers in the Dow Jones index today.

From the technical point of view, Dow Jones attempts to settle above the resistance at 53,300 – 53,400. If Dow Jones manages to settle above the 53,400 level, it will head towards the next resistance at 53,900 – 54,000.  On the support side, a move below the 53,200 will push Dow Jones towards the support level at 52,800 – 52,900.

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