NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Retreats As Sandisk Dives 10%

SP500 Moves Lower Amid Rising Tensions In The Middle East

SP500 is losing ground as traders focus on rising tensions in the Middle East and react to economic reports.

Iran fired two ballistic missiles towards UAE, but both missiles fell into the sea. President Trump warned Oman against a potential Hormuz deal with Iran. Interestingly, oil prices are mostly flat despite these events. However, stock traders are worried that oil prices will move higher after another round of escalation in the Middle East.

Today, traders also focused on housing market data. Building Permits increased by +5% month-over-month in July, compared to analyst forecast of +1.2%. Housing Starts decreased by -12.4%, compared to analyst consensus of -4.7%. Pending Home Sales decreased by -2.3% in July, while analysts expected that they would grow by +0.3%. From a big picture point of view, high interest rates continue to put pressure on the housing market.

Traders also had a chance to take a look at the Industrial Production report for July. The report showed that Industrial Production increased by +0.2% on a month-over-month basis, compared to analyst forecast of +0.3%.

Healthcare and consumer defensive stocks were among the biggest gainers today as demand for safe-haven assets declined. Energy stocks have also gained ground as traders reacted to the rebound in natural gas markets. Tech stocks found themselves under strong pressure as traders rushed to take profits in AI stocks.

Currently, SP500 is trying to settle below the support level at 7720 – 7730. In case this attempt is successful, SP500 will head towards the next support level, which is located in the 7615 – 7625 range. RSI is close to the oversold territory, but there is enough room to gain momentum in case the right catalysts emerge.

NASDAQ Retreats As Traders Focus On Global Bond Market Sell-Off

NASDAQ is losing ground as traders sell tech stocks. Sandisk, which is down by -10%, is among the biggest losers in the NASDAQ index today.

Tech stocks found themselves under pressure as traders focused on global bond market sell-off. Government bond yields are moving higher as investors are worried about long-term sustainability of public finances in developed countries. AI revolution is dependent on debt financing, so problems in bond markets are bearish for AI-related stocks.

The nearest support level for NASDAQ is located in the 29,450 – 29,500 range. A successful test of this level will push NASDAQ towards the next support at 29,100 – 29,150.

Dow Jones Tests Support At 53,300 – 53,400

Dow Jones is moving lower amid broad pullback in the equity markets. Caterpillar, which is down by -4.9%, is the worst performer in the Dow Jones index today.

Dow Jones attempts to settle below the support level at 53,300 – 53,400. If Dow Jones manages to settle below the 53,300 level, it will head towards the support level at 52,800 – 52,900.

On the upside, Dow Jones needs to climb back above the 53,500 level to gain upside momentum in the near term. In this case, Dow Jones will head towards the 50 MA at 53,765. A move above the 50 MA will push Dow Jones towards the resistance level at 54,000 – 54,100.

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