NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Retreats As Meta Dives 11.6%

SP500

SP500 is losing ground as traders take profits in tech stocks. Fed rate cut did not provide support to the market as traders worried that Fed will not start QE in the near term. Interestingly, the one-year trade truce with China did not serve as a positive catalyst. Traders believe that the deal did not address fundamental issues and that both countries could quickly return to trade war tactics. Real estate, healthcare and consumer defensive stocks were among the gainers today as demand for safe-haven assets increased.

SP500 failed to settle above the resistance level at 6890 – 6900 and is moving towards the support level at 6830 – 6840. In case SP500 manages to settle below the 6830 level, it will head towards the 50 MA at 6812. A move below the 50 MA will push SP500 towards the next support at 6765 – 6775.

NASDAQ

NASDAQ is under pressure as Meta is down by 11.6% after the earnings report. The company announced that it would sell $30 billion of bonds to fund its AI-related spending. From a big picture point of view, traders worry that big tech companies will spend too much on AI, which will hurt their financial performance in the near term.

In case NASDAQ declines below the 25,800 level, it will head towards the support at 25,550 – 25,600. RSI is in the moderate territory, and there is plenty of room to gain momentum in the near term.

Dow Jones

Dow Jones is mostly flat, supported by rising demand for safe-haven sectors. Honeywell, which was down by 5.7%, was the worst performer in the Dow Jones index today.

From the technical point of view, Dow Jones continues its attempts to settle above the resistance at 47,500 – 47,600. In case Dow Jones stays above the 47,600 level, it will head towards recent highs near the 48,000 level.

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