NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Retreats As Alphabet Dives 5%

SP500 Pulls Back Despite Falling Oil Prices

SP500 is losing ground as traders continue to take profits near historic highs and focus on rising Treasury yields.

The yield of 2-year Treasuries climbed above the 4.23% level, while the yield of 10-year Treasuries settled above 4.50%. Traders focused on inflationary risks and bet that Fed will be forced to raise rates.

The strong pullback in the oil markets did not provide support to SP500 today. WTI oil declined towards the $74.00 level amid signs of progress in U.S. – Iran negotiations.

Interestingly, energy stocks were among the biggest gainers today. Real estate and utilities stocks have also managed to gain ground despite rising Treasury yields. These sectors were supported by rising demand for safe-haven assets.

Consumer cyclical and industrials stocks moved lower in today’s trading session. Basic materials stocks have also found themselves under pressure despite rising precious metals markets. Traders are worried that rising interest rates will ultimately put more pressure on the price of precious metals.

In case SP500 declines below the 50 MA at 7472, it will get to the test of the support level at 7450 – 7460. A successful test of the support at 7450 – 7460 will open the way to the test of the next support at 7370 – 7380. RSI is in the moderate territory, so there is plenty of room to gain momentum in case the right catalysts emerge.

On the upside, SP500 needs to settle back above the 7500 level to have a chance to gain upside momentum in the near term. In this case, SP500 will head towards the resistance at 7540 – 7550.

NASDAQ Moves Lower As Traders Sell Tech Stocks

NASDAQ is losing ground amid pullback in the tech sector. Alphabet, which was down by -5%, was among the biggest losers in the NASDAQ index today. The stocks pulled back amid AI talent exodus to Anthropic and OpenAI. The strong sell-off in SpaceX stock, which is down by -16%, also hurt market sentiment in the tech space.

Currently, NASDAQ is trying to settle below the support level at 30,250 – 30,300. In case this attempt is successful, NASDAQ will head towards the 50 MA at 29,964. A move below the 50 MA will open the way to the test of the support at 29,800 – 29,850.

Dow Jones Tests Support At 51,600 – 51,800

Dow Jones managed to gain some ground, supported by rising demand for Industrials and Healthcare stocks.

Amazon, which was down by -4.5%, was among the biggest losers in the Dow Jones index today. Nike stock also found itself under significant pressure in today’s trading session.

Dow Jones attempts to settle below the support at 51,600 – 51,700. If Dow Jones manages to settle below the 51,600 level, it will head towards the 50 MA at 51,399. A move below the 50 MA will open the way to the test of the support at 51,000 – 51,100.

On the upside, Dow Jones needs to settle above the 51,800 level to gain upside momentum in the near term. In this case, Dow Jones will head towards the resistance, which is located near historic highs at 52,100 – 52,200.

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