NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Retreats As Meta Dives 8%

SP500 Tests Support At 6510 – 6520

SP500 is under strong pressure as traders worry that U.S. may start a ground operation in Iran.

Iran has rejected U.S. proposals to end the war and came up with its own proposals. Iran’s terms include payment of reparations from U.S. and Israel, so it’s not surprising to see that traders do not believe that the war will end soon.

Oil prices rallied as traders reacted to recent developments in the Middle East. WTI oil climbed above the $94.00 level, while Brent oil rallied towards $108.00. The rally will continue in case of an additional escalation in the Middle East, which will be bearish for stocks.

Treasury yields moved higher as bond traders bet that Fed may be forced to raise rates to fight inflation, which will be triggered by high energy prices. The yield of 2-year Treasuries climbed towards the 4.00% level, putting additional pressure on major indices.

Today, traders had a chance to take a look at the Initial Jobless Claims report. The report showed that 210,000 Americans filed for unemployment benefits in a week, in line with analyst estimates. The report did not have a major impact on market dynamics as traders focused on stronger catalysts.

Energy stocks gained ground as traders focused on the strong rally in the oil markets. Rising natural gas markets provided additional support to the energy sector.

Tech stocks found themselves under strong pressure as investors’ appetite for risk declined.

Currently, SP500 is trying to settle below the support at 6510 – 6520. In case this attempt is successful, SP500 will move towards the next support level, which is located in the 6440 – 6450 range. RSI remains in the moderate territory, so there is plenty of room to gain momentum in the near term.

NASDAQ Dives Amid Sell-Off In The Tech Sector

NASDAQ is under strong pressure as Google presented TurboQuant, a new AI memory compensation algorithm. According to Google, the new technology allows to shrink AI memory requirements without a negative impact on performance.

Seagate and Western Digital were among the biggest losers in the NASDAQ index today as traders worried that technological advancements will hurt demand for memory chips.

Leading AI stocks like NVIDIA and Advanced Micro Devices have also found themselves under significant pressure.

Meta declined by 8% as it lost a case over youth addiction to social media. Traders worry that multiple lawsuits will follow to seek damages from Meta.  Google has also lost in this case.

The nearest support level for NASDAQ is located in the 23,600 – 23,650 range. A move below the 23,600 level will push NASDAQ towards the next support at 23,250 – 23,300.

Dow Jones Pulls Back Amid Rising Oil Prices

Dow Jones moved lower amid broad pullback in the equity markets. Chevron was the biggest gainer in the Dow Jones index today as traders focused on the oil market rally.

Industrials stocks found themselves under pressure as traders worried that high energy prices will put significant pressure on global economy.

Dow Jones is moving towards the support at 45,700 – 45,800. If Dow Jones declines below the 45,700 level, it will head towrards the 45,200 level.

On the upside, Dow Jones needs to settle above the resistance at 46,300 – 46,400 to gain sustainable upside momentum in the near term. If Dow Jones climbs above 46,400, it will head towards the next resistance at 47,100 – 47,200.

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