NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Retreats As Microsoft Dives 5.1%

SP500

SP500 is losing ground as traders react to economic reports and focus on the results of tech companies. PCE Price Index increased by 0.2% month-over-month in September, compared to analyst consensus of +0.2%. Core PCE Index grew by 0.3%, in line with analyst estimates. Personal Spending increased by 0.5% month-over-month in September, while Personal Income grew by 0.3%. Initial Jobless Claims report indicated that 216,000 Americans filed for unemployment benefits in a week, compared to analyst forecast of 230,000. Overall, the reports were rather bullish, but traders focused on the sell-off in the tech sector. As a result, utilities and energy stocks were the only gainers in the SP500 index today.

Currently, SP500 is trying to settle below the support level at 5735 – 5750. In case this attempt is successful, SP500 will head towards the next support, which is located in the 5675 – 5685 range.

NASDAQ

NASDAQ is losing ground as traders focus on the earnings reports. Microsoft is down by 5.1% as traders worry that high AI costs will hurt profits. Meta  is down by 3.7% for the same reason. Not surprisingly, NVIDIA shares have also found themselves under pressure as traders worried that demand for the company’s AI products could fall.

A successful test of the support at 20,000 – 20,100 will push NASDAQ towards the next support level at 19,500 – 19,600.

Dow Jones

Dow Jones is moving lower amid broad pullback in the equity markets. Microsoft and Intel  are the biggest losers in the Dow Jones index today.

If Dow Jones settles below the 41,800 level, it will head towards the nearest support at 41,400 – 41,500. RSI has recently moved back into the moderate territory, so there is plenty of room to gain momentum in case the right catalysts emerge.

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