NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Rebounds As Traders Shrug Off Geopolitical Risks

SP500 Rebounds As Traders Buy The Dip

SP500 rebounded from session lows as traders focused on developments in the oil markets.

Oil prices rallied as traders reacted to another round of escalation in the Middle East. President Trump said that the U.S. may strike targets in Iran again tonight. He added that Iran’s power and desalination plants could be attacked. Earlier, Iran attacked several vessels in the Strait of Hormuz, which triggered strong reaction from the U.S.

U.S. has already revoked a sanctions waiver for Iranian oil, so global oil supply will decline in the near term. However, oil prices moved away from session highs as traders took some profits off the table after the strong rally. It looks that the market believes that U.S. and Iran will soon get back to negotiations.

Treasury yields moved higher as traders focused on rising oil prices. The yield of 2-year Treasuries climbed above the 4.20% level, while the yield of 10-year Treasuries settled near 4.57%. Rising 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. Tech stocks have also moved higher. Most market sectors found themselves under pressure as traders worried about rising geopolitical and inflationary risks. Basic materials stocks were among the biggest losers today as traders focused on the strong pullback in precious metals markets.

Currently, SP500 is trying to settle back above the 50 MA at 7484. In case this attempt is successful, SP500 will move towards the resistance, which is located in the 7540 – 7550 range. A move above the 7550 level will push SP500 towards the next resistance at 7615 – 7625.

NASDAQ Moved Away From Session Lows Amid Strong Demand For Tech Stocks

NASDAQ is mostly flat as traders rushed to buy tech stocks after the initial pullback. NVIDIA, which is up by 3.9%, is among the biggest gainers in the NASDAQ index today. From a big picture point of view, traders shrug off Fed hike risks and focus on the AI story.

The nearest resistance level for NASDAQ is located in the 29,350 – 29,400 range. In case this attempt is successful, NASDAQ will head towards the 50 MA at 29,611. A move above the 50 MA will push NASDAQ towards the next resistance at 29,800 – 29,850. RSI is in the moderate territory, so there is plenty of room to gain upside momentum in the near term.

Dow Jones Tested Support At 52,100 – 52,200

Dow Jones pulled back amid falling demand for defensive sectors. Most stocks in the Dow Jones index found themselves under pressure in today’s trading session. American Express, which was down by -4.4%, was the biggest loser in the Dow Jones index today.

The nearest support level for Dow Jones is located in the 52,100 – 52,200 range. A move below the 52,100 level will push Dow Jones towards the next support, which is located in the 51,600 – 51,700 range.

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