NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Pulls Back As Traders Focus On Fed Decision And Trump’s Comments

SP500

SP500 pulls back as traders react to Fed Interest Rate Decision and Trump’s comments. Fed decided to leave the federal funds rate unchanged, in line with analyst estimates. However, Fed noted that risks of higher unemployment and higher inflation have increased. Meanwhile, President Donald Trump said that he would not lower tariffs on China to start trade negotiations. U.S. officials will soon meet with China officials in Switzerland to discuss the trade war. Trump has also denied that the U.S. initiated trade talks. China has previously claimed that the U.S. asked for trade negotiations. Trade war uncertainty may put pressure on stocks, although Fed policy outlook may serve as the key catalyst in the near term. It should be noted that SP500 will be sensitive to Powell’s comments during the press conference, which starts soon.

Currently, SP500 is trying to settle below the support at 5590 – 6000. In case this attempt is successful, SP500 will head towards the next support level, which is located in the 5500 – 5510 range. RSI remains in the moderate territory, and there is plenty of room to gain additional downside momentum in case the right catalysts emerge.

NASDAQ

NASDAQ moved lower after the release of Fed Interest Rate Decision. Fed mentioned the risks of higher inflation, which means that central bank may be more hawkish than previously expected.

The nearest support level for NASDAQ is located in the 19,500 – 19,550 range. A move below this level will push NASDAQ towards the next support level at 19,000 – 19,050.

Dow Jones

Dow Jones pulled back from session highs but remained in the positive territory. The strong rally in Disney stock provided support to Dow Jones in today’s trading session. The stock soared 9.8% as traders reacted to the strong quarterly report.

In case Dow Jones declines below the 50 MA at 40.707, it will move towards the next support level at 40,000 – 40,100.

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