NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Retreats As Micron Dives 7%

SP500 Tests Support At 7350 – 7360

SP500 is losing ground as traders focus on geopolitical developments and worry about rising yields.

President Trump has recently said that he called off the scheduled attack on Iran. He noted that “serious negotiations are now taking place”. Oil markets pulled back from session highs as traders reacted to Trump’s words. WTI oil pulled back below the $106.50 level, while Brent oil settled below $110.00.

Today, traders had a chance to take a look at the NAHB Housing Market Index report. The report showed that NAHB Housing Market index improved from 34 in April to 37 in May, compared to analyst forecast of 35.

NAHB commented: “The housing market remains soft as higher mortgage rates, rising gas prices and economic uncertainty related to the war in Iran continue to dampen buyer demand.”

Treasury yields pulled back from session highs as some traders were ready to buy Treasuries after the strong sell-off. However, yields remained elevated. The yield of 10-year Treasuries settled near the 4.60% level, while the yield of 30-year Treasuries settled near 5.13%.

Energy stocks were among the biggest gainers today as traders focused on rising natural gas markets. Tech stocks found themselves under strong pressure amid profit-taking.

The nearest support level for SP500 is located in the 7350 – 7360 range. In case SP500 manages to settle below the 7350 level, it will head towards the next support at 7250 – 7260.

On the upside, SP500 needs to settle above the 50 MA at 7408 to gain upside momentum in the near term. A move above this 50 MA will push SP500 towards the resistance at 7425 – 7435.

NASDAQ Moves Lower Amid Falling Demand For Tech Stocks

NASDAQ moved lower amid strong pullback in the tech sector. Micron, which was down by 7%, was among the biggest losers in the NASDAQ index today. NVIDIA remained under pressure as Trump said that China had not purchased the company’s H200 GPUs.

NASDAQ failed to settle above the resistance at 29,200 – 29,250 and is trying to settle below the 28,800 level. In case this attempt is successful, NASDAQ will head towards the nearest support level, which is located in the 28,500 – 28,550 range. RSI is in the moderate territory, so there is plenty of room to gain momentum in case the right catalysts emerge.

On the upside, a move above the 50 MA at 29,097 will push NASDAQ towards the resistance level at 29,200 – 29,250.

Dow Jones Rebounds From Recent Lows

Dow Jones gained some ground as oil markets pulled back from session highs after Trump’s announcement. 3M, which was up by 4.3%, was the biggest gainer in the Dow Jones index today. The stock rallied as traders bet on AI-related demand. Salesforce also gained strong momentum as demand for software stocks increased.

The nearest resistance level for Dow Jones is located in the 49,700 – 49,800 range. This resistance level has already been tested several times and proved its strength. In case Dow Jones manages to settle above the 49,800 level, it will head towards the resistance at 50,400 – 50,500.

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