NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Retreats As Intel Dives 10.5%

SP500 Is Losing Ground As Treasury Yields Rise

SP500 pulled back as traders focused on rising oil markets and reacted to the sell-off in the tech sector.

Oil prices rallied as Iran attacked vessels in the Strait of Hormuz. Iran wants to force all vessels to go through Iran-approved routes. WTI oil climbed above the $71.00 level, while Brent oil rallied towards the $75.00 level.

Treasury yields moved higher as bond traders reacted to recent developments in the Middle East. The yield of 2-year Treasuries moved above the 4.16% level, while the yield of 10-year Treasuries settled near 4.53%. Rising Treasury yields put additional pressure on the SP500.

Not surprisingly, energy stocks were among the biggest gainers in the SP500 today. Interestingly, real estate stocks have also managed to gain ground despite rising Treasury yields. Healthcare, utilities, and consumer defensive stocks have also moved higher amid rising demand for safe-haven assets.

Basic materials stocks moved lower as traders focused on the pullback in gold and silver markets. Tech stocks declined amid valuation worries.

SP500 failed to settle above the resistance level at 7540 – 7550 and made an attempt to settle below the 7500 level. If SP500 pulls back below 7500, it will head towards the 50 MA at 7471. A move below the 50 MA will open the way to the test of the support level at 7450 – 7460.

On the upside, SP500 needs to settle above the 7550 level to gain upside momentum in the near term. In this case, SP500 will head towards the resistance level at 7615 – 7625.

NASDAQ Retreats As Traders Sell Tech Stocks

NASDAQ moved lower amid strong pullback in the tech sector. Traders are worried about valuations of AI-related stocks.

Intel, which was down by -10.5%, was among the biggest losers in the NASDAQ index today. The stock suffered a sell-off as traders reacted to Samsung’s second quarter outlook. Samsung’s record profits were not sufficient to provide support to tech stocks. From a big picture point of view, investors are worried about sustainability of AI rally and want to take profits off the table near historic highs.

NASDAQ declined below the support level at 29,350 – 29,400 and is trying to settle below the 29,250 level. In case this attempt is successful, NASDAQ will head towards the next support, which is located in the 28,950 – 29,000 range. RSI is in the moderate territory, so there is plenty of room to gain additional downside momentum in the near term.

Dow Jones Pulls Back From Historic Highs

Dow Jones moved away from historic highs amid broad pullback in the equity markets. Caterpillar, which was down by -4.6%, was the biggest loser in the Dow Jones index today. The stock pulled back as traders reacted to the strong rally in the oil markets.

In case Dow Jones manages to settle below the 52,700 level, it will head towards the 50 MA at 52,414. A move below the 50 MA will push Dow Jones towards the support at 52,100 – 52,200. If Dow Jones declines below the 52,100 level, it will gain additional downside momentum and move towards the next support at 51,600 – 51,700.

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