NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Retreats As Microsoft Dives 12%

SP500

SP500 pulled back amid strong sell-off in the tech sector, which was driven by Microsoft’s earnings report. The report indicated that company’s spending rose to record highs while growth of its cloud sales slowed down. From a big picture point of view, traders are worried that huge AI-related spending will put pressure on companies’ bottom lines. It should be noted that SP500 managed to rebound from session lows as some traders used the pullback as an opportunity to increase their long positions at attractive levels. Basic materials stocks have also moved lower as traders reacted to the pullback in precious metals markets. Energy stocks were among the biggest gainers, supported by the strong rally in the oil markets. Oil traders bet that U.S. may strike Iran this weekend.

Currently, SP500 is trying to settle back above the resistance at 6940 – 6950. In case this attempt is successful, SP500 will move towards the next resistance level, which is located in the 6990 – 7000 range.

NASDAQ

NASDAQ found itself under strong pressure due to the sell-off in Microsoft stock. Strategy, which was down by 11.5%, was among the biggest losers in the NASDAQ index today. The stock pulled back as Bitcoin declined below the $84,000 level.

From the technical point of view, NASDAQ failed to settle below the 50 MA at 25,599 and moved towards the resistance at 25,800 – 25,850. If NASDAQ settles back above the 25,850 level, it will head towards the next resistance at 26,250 – 26,300.

Dow Jones

Dow Jones is losing ground amid broad sell-off in the equity markets. However, Dow Jones failed to settle below the support at 48,700 – 48,800 and is moving towards the 50 MA at 49,004.

In case Dow Jones climbs above the 50 MA, it will head towards the strong resistance level at 49,500 – 49,600.

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