NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Retreats Ahead Of Apple’s Report

SP500 Retreats From Session Highs

SP500 pulled back from session highs despite the strong sell-off in the oil markets. Oil prices are down by 7% as traders focus on geopolitical developments. Iran’s Supreme Leader Khamenei provided government officials with certain powers to continue negotiations with the U.S. Oil traders believe that Iran would finally start serious negotiations, which would involve its nuclear program. It remains to be seen whether Iran is ready for concessions, but oil bulls rush for exits.

Treasury yields moved lower as bond traders focused on developments in the oil markets. The yield of 2-year Treasuries pulled back towards the 4.58% level, while the yield of 10-year Treasuries settled below 4.89%. Falling Treasury yields did not provide material support to SP500 in today’s trading session.

SP500 gained some ground at the start of the trading session but lost momentum and pulled back. Traders continue to sell tech stocks ahead of Apple‘s earnings report, which will be released today. Traders are worried that AI investments will hurt cash flows of tech leaders, leading to massive re-pricing of their valuations.

This is not the first time the market is worried about the impact of AI. However, the negative impact of AI has already shown up in some key reports, including the ones from Alphabet and Intel. In this environment, any weakness from Apple will likely push the market lower.

Energy stocks are among the biggest losers as traders react to the sell-off in the oil markets. Tech stocks are under strong pressure amid AI-related fears. Consumer cyclical and consumer defensive stocks gained strong upside momentum as traders focused on lower oil prices and falling Treasury yields.

SP500 failed to settle above the resistance at 7615 – 7625 and is trying to settle below the 7600 level. In case this attempt is successful, SP500 will head towards the nearest support, which is located in the 7515 – 7525 range. A successful test of this level will open the way to the test of the next support at 7440 – 7450. RSI is in the moderate territory, so there is plenty of room to gain momentum in case the right catalysts emerge.

NASDAQ Remains Under Pressure As Traders Sell Tech Stocks

NASDAQ moved lower amid pullback in the tech sector. Chip stocks were among the biggest losers in the NASDAQ index today.

Currently, NASDAQ is trying to settle below the support level at 28,250 – 28,300. In case this attempt is successful, NASDAQ will move towards the next support, which is located in the 27,800 – 27,900 range. RSI has recently moved back into oversold territory, but there is enough room to gain downside momentum in case the right catalysts emerge.

Dow Jones Moves Higher Amid Rising Demand For Consumer Stocks

Dow Jones gained ground as demand for consumer stocks increased. Home Depot and Walmart were among the biggest gainers in the Dow Jones index today.

In case Dow Jones manages to settle above the resistance level at 52,300 – 52,400, it will head towards the next resistance at 52,900 – 53,000. On the support side, a move below the 52,100 level will open the way to the test of the nearest support at 51,700 – 51,800.

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