NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Retreats As OpenAI Misses Its Own Targets

SP500 Pulls Back As Traders Focus On AI Stocks

SP500 is losing ground as OpenAI missed revenue targets while oil prices tested new highs.

According to WSJ, OpenAI missed targets for revenue and new users. The company is not public yet. Competition from Google’s Gemini and Anthropic put pressure on OpenAI results. AI-related stocks found themselves under pressure as traders reacted to the report.

WTI oil tested the $100 level as traders focused on the lack of progress in U.S. – Iran negotiations. The Strait of Hormuz remains closed, and the situation in the physical oil market is tense. High oil prices may put significant pressure on global economy, creating various risks for businesses.

Today, traders had a chance to take a look at the CB Consumer Confidence report for April. The report showed that CB Consumer Confidence increased from 92.2 in March to 92.8 in April, compared to analyst forecast of 89. Interestingly, CB Consumer Confidence increased despite concerns about rising gasoline prices.

Case-Shiller Home Price Index report showed that home prices increased by +0.9% year-over-year in February, compared to analyst consensus of +1.1%.

Not surprisingly, energy stocks were among the biggest gainers in the SP500 index today as traders reacted to the strong rally in the oil markets.

Basic materials stocks found themselves under pressure as traders focused on the pullback in precious metals markets. Tech stocks have also moved lower amid concerns about OpenAI results.

In case SP500 manages to settle below the 50 MA at 7124, it will head towards the support level at 7100 – 7110. A successful test of the support at 7100 – 7110 will open the way to the test of the next support at 7010 – 7020.

NASDAQ Moves Lower As Tech Stocks Fall

NASDAQ is losing ground amid pullback in the tech sector. Arm Holdings, which is down by 6.8%, is the worst performer in the NASDAQ index today.

From a big picture point of view, traders rush to take some profits off the table ahead of earnings reports from key tech companies.

Currently, NASDAQ is trying to settle below the support level at 26,950 – 27,000. In case this attempt is successful, NASDAQ will move towards the next support, which is located in the 26,500 – 26,550 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 27,200 level will push NASDAQ back towards the resistance at 27,350 – 27,400.

Dow Jones Is Stuck Near Key Support Level

Dow Jones is losing some ground amid broad pullback in the equity markets. Cisco and NVIDIA are among the biggest losers in the Dow Jones index today.

Coca-Cola, which was up by +4.2%, was the biggest gainer in the index. The stock rallied as traders reacted to the better-than-expected earnings report.

Dow Jones continues its attempts to settle below the support level at 49,000 – 49,100. This support level has been tested many times and proved its strength. In case Dow Jones manages to settle below the 49,000 level, it will gain additional downside momentum and move towards the next support, which is located in the 48,200 – 48,300 range.

On the upside, Dow Jones needs to settle above 49,400 to gain upside momentum in the near term. In this case, Dow Jones will head towards the resistance at 49,700 – 49,800.

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