NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Pulls Back As SpaceX Dives 12%

SP500 Retreats From Historic Highs

SP500 pulled back from historic highs as traders took some profits off the table after the strong rally and reacted to economic reports.

ADP Employment Change report showed that private businesses added +44,000 jobs in July, compared to analyst consensus of +70,000. The previous report was revised from 98,000 to 95,000.

ISM Services PMI improved from 54.0 in June to 54.1 in July, while analysts expected that it would increase to 54.5. Numbers above 50 show expansion.

Treasury yields were mixed as bond traders remained focused on the situation in the Middle East. Iran said that it could announce a deal with Oman soon. This deal will be a major step towards the reopening of the Strait of Hormuz. The yield of 2-year Treasuries declined towards the 4.18% level, while the yield of 10-year Treasuries settled above 4.62%.

Basic materials stocks were among the biggest gainers today as traders focused on the strong rally in precious metals markets. Gold climbed above the $4250 level, while silver settled above $62.00.

Energy stocks found themselves under pressure as traders waited for geopolitical news and bet that the Strait of Hormuz would be reopened soon.

SP500 faced resistance near the 7800 level and pulled back towards the support at 7720 – 7730. In case SP500 manages to settle below the 7720 level, it will head towards the next support, which is located in the 7615 – 7625 range. RSI remains in the overbought territory, so the risks of a pullback are increasing.

NASDAQ Moves Lower As SpaceX Shares Plunge

NASDAQ has also moved away from recent highs amid profit-taking. SpaceX, which was down by -12%, was the biggest loser in the NASDAQ index today. The stock suffered a sell-off as traders reacted to the company’s earnings report. SpaceX stock has been steadily moving lower after its record-breaking IPO.

Advanced Micro Devices, which was down by -6.3%, was also among the biggest losers in the NASDAQ index. The stock pulled back as SpaceX chose a competitor for its AI project.

From the technical point of view, NASDAQ failed to settle above the resistance at 29,850 – 29,900 and pulled back towards the 29,600 level. If NASDAQ manages to settle below 29,600, it will head towards the support level at 29,200 – 29,250.

On the upside, a successful test of the resistance level at 29,850 – 29,900 will push NASDAQ towards the next resistance level at 30,350 – 30,400.

Dow Jones Tested Historic Highs As Rally Continued

Dow Jones gained ground as traders remained bullish after the strong rally. Most stocks in the Dow Jones index moved higher in today’s trading session. NVIDIA, which was up by +4.3%, was the biggest gainer in the index today. The stock rallied as SpaceX would build its AI infrastructure using NVIDIA’s platform.

The nearest support level for Dow Jones is located in the 54,000 – 54,100 range. If Dow Jones manages to settle below the 54,000 level, it will head towards the next support level at 53,300 – 53,400.

On the upside, Dow Jones needs to settle above the resistance level at 54,600 – 54,700 to have a chance to gain upside momentum in the near term. In this case, Dow Jones will move towards the psychologically important 55,000 level.

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