NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Retreats As NVIDIA Sinks 5%

SP500 Pulls Back As Traders Focus On NVIDIA’s Results

SP500 pulled back as traders reacted to NVIDIA’s earnings report. The report beat analyst estimates, but traders rushed to sell NVIDIA shares. NVIDIA stock was down by 5% in today’s trading session.

Interestingly, NVIDIA provided a bullish forecast but traders remained bearish. Traders worry that current AI spending is not sustainable, so NVIDIA’s revenues will ultimately drop.

Today, traders also focused on the encouraging Initial Jobless Claims report. The report showed that 212,000 Americans filed for unemployment benefits in a week, compared to analyst forecast of 215,000.

It should be noted that SP500 has started to rebound from session lows as oil prices pulled back from session highs. U.S. – Iran talks achieved progress, and negotiators would meet in Vienna next Monday. Lower oil prices are bullish for most stocks.

Tech stocks were among the biggest losers in the SP500 today as traders focused on NVIDIA’s report. AI-related worries put significant pressure on the tech sector.

Financial and real estate stocks have managed to gain some ground in today’s trading session.

SP500 found support in the 6870 – 6880 range and is trying to settle back above the 6900 level. In case this attempt is successful, SP500 will move towards the resistance level, which is located in the 6940 – 6950 range.

NASDAQ Retreats As Traders Sell Tech Stocks

NASDAQ is under strong pressure amid sell-off in the tech sector. NVIDIA was among the biggest losers in the NASDAQ index today.

Micron, Advanced Micro Devices, and Intel have also found themselves under material pressure.

The pullback in NVIDIA stock shows that market sentiment in the tech sector is rather bearish. Traders have started to take profits off the table in the leading stocks of the sector.

At this point, tech stocks need significant positive catalysts to gain sustainable upside momentum.

NASDAQ pulled back below the previous support at 25,200 – 25,250 and is trying to settle below the 50 MA at 24,894. In case this attempt is successful, NASDAQ will head towards the nearest support level, which is located in the 24,700 – 24,750 range.

On the upside, NASDAQ needs to climb back above 25,250 to gain upside momentum. A move above the 25,250 level will push NASDAQ towards the resistance at 25,600 – 25,650.

Dow Jones Is Mostly Flat Amid Rising Demand For Defensive Sectors

Dow Jones was swinging between gains and losses as demand for defensive sectors increased. Financial and consumer stocks were among the biggest gainers in the Dow Jones index today.

Salesforce  gained 4.5% as traders reacted to the company’s earnings report. The company beat analyst estimates and announced a major share buyback program, which served as the key catalyst for today’s rally.

Salesforce stock has been under strong pressure since the start of the year as traders worried that AI would hurt the company’s business. The announcement of the buyback program shows that Salesforce has sufficient cash flows and will use it to buy its own stock at attractive levels.

From the technical point of view, Dow Jones is trying to settle above the nearest resistance at 49,500 – 49,600. If Dow Jones manages to settle above the 49,600 level, it will move towards the next resistance, which is located in the 50,400 – 50,500 range. RSI is in the moderate territory, so there is plenty of room to gain additional momentum in case the right catalysts emerge.

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