NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Retreats As Broadcom Dives 10.6%

SP500

SP500 is losing ground as traders react to Broadcom’s earnings report, which raised worries about AI-related stocks. The report beat analyst estimates but the company’s sales outlook missed expectations. As a result, Broadcom is down by 10.6% in today’s trading session. In addition, reports indicated that some of Oracle’s data center projects would be delayed. Oracle shares are down by 3.5%. Basic materials stocks have also found themselves under pressure as traders focused on the sell-off in silver markets, which was driven by profit-taking. Consumer defensive and consumer cyclical stocks managed to gain some ground as demand for safe-haven assets increased.

In case SP500 manages to settle below the 6850 level, it will head towards the nearest support, which is located in the 6750 – 6760 range.

NASDAQ

NASDAQ is under strong pressure amid sell-off in the tech sector. Traders worry about AI bubble. Broadcom and Micron are among the worst performers in the NASDAQ index today.

The nearest support level for NASDAQ is located in the 25,200 – 25,250 range. In case NASDAQ manages to settle below the 25,200 level, it will head towards the next support at 24,800 – 24,850. RSI remains in the moderate territory, so there is plenty of room to gain momentum in case the right catalysts emerge.

Dow Jones

Dow Jones pulled back from historic highs as traders focused on the sell-off in AI-related stocks. Not surprisingly, NVIDIA  was among the biggest losers in the Dow Jones index today.

Currently, Dow Jones is trying to settle below the 48,500 level. In case this attempt is successful, Dow Jones will head towards the support, which is located in the 47,900 – 48,000 range. A move below 47,900 will open the way to the test of the next support level at 47,100 – 47,200.

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