NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Pulls Back As Treasury Yields Rise

SP500 Is Flat Amid Rising Tensions In The Middle East

SP500 is mostly flat as traders focus on the strong rally in the oil markets. Oil prices gained more than 6% as U.S. – Iran negotiations failed. Iran demanded reparations for war damages. According to Iran, the Strait of Hormuz would not be reopened until the country is compensated.

In turn, President Trump said that U.S. will demand compensation from Iran for “all the people that they have killed”. Trump also signaled that he would use economic pressure to push Iran back to negotiations. He noted that Iran suffered from high inflation and had no money.

Recent comments from U.S. and Iran served as a major bullish catalyst for oil markets as traders bet that the Strait of Hormuz would not be reopened in the near term. Rising oil prices pushed Treasury yields higher. The yield of 2-year Treasuries climbed above the 4.24% level, while the yield of 10-year Treasuries settled above 4.70%. Higher Treasury yields did not put material pressure on SP500 in today’s trading session.

Not surprisingly, energy stocks were among the biggest gainers in the SP500 index today. Basic materials stocks have also gained upside momentum as traders focused on rising gold and silver markets. Real estate and utilities stocks pulled back as Treasury yields moved higher.

In case SP500 stays above the 7750 level, it will head towards the resistance level at 7790 – 7800. A move above the 7800 level will provide SP500 with an opportunity to gain additional upside momentum. RSI is in the moderate territory, so there is plenty of room to gain momentum in case the right catalysts emerge.

On the support side, a successful test of the support at 7720 – 7730 will push SP500 towards the next support level at 7615 – 7625.

NASDAQ Pulls Back Amid Profit-Taking

NASDAQ is losing some ground as traders focus on rising Treasury yields and take some profits off the table after the strong rally.

The nearest resistance level for NASDAQ is located in the 29,850 – 29,900 range. in case NASDAQ manages to settle above the 29,900 level, it will head towards the next resistance level, which is located in the 30,350 – 30,400 range.

On the support side, a move below the 29,500 level will push NASDAQ towards the support at 29,200 – 29,250. In case NASDAQ declines below the 29,200 level, it will head towards the 50 MA at 28,962.

Dow Jones Moves Lower As NVIDIA Pulls Back

Dow Jones pulls back as traders focus on rising oil prices. Chevron, which is up by +4.1%, is the biggest gainer in the Dow Jones index today. The stock gained strong upside momentum, supported by the rally in the oil markets.

NVIDIA pulled back by -2.2% amid worries about a potential $500 billion AI infrastructure financing.

If Dow Jones declines below the 53,750 level, it will head towards the nearest support, which is located in the 53,300 – 53,400 range. On the upside, a successful test of the resistance at 54,000 – 54,100 will open the way to the test of the next resistance at 54,600 – 54,700.

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