NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Retreats As Sandisk Dives 14%

SP500 Moves Lower As Non Farm Payrolls Miss Estimates

SP500 pulled back as traders reacted to the weak Non Farm Payrolls report. The report indicated that U.S. economy added 57,000 jobs in June, compared to analyst forecast of 110,000.

Participation Rate declined from 61.8% in May to 61.5% in June. As a result, Unemployment Rate decreased from 4.3% to 4.2%, compared to analyst consensus of 4.3%.

The yield of 2-year Treasuries pulled back towards the 4.13% level as traders reacted to the NFP report. The yields of 10-year and 30-year Treasuries gained some ground. Falling shorter-term yields did not provide support to stocks in today’s trading session.

Traders also had a chance to take a look at the Factory Orders report for May. The report indicated that Factory Orders decreased by -1.3%, compared to analyst consensus of -1.8%.

Healthcare stocks were among the biggest gainers in the SP500 today. Consumer defensive and utilities stocks have also gained strong upside momentum. Basic materials stocks moved higher as traders focused on the rally in the precious metals markets.

Tech stocks suffered a sell-off, putting significant pressure on SP500. Consumer cyclical and industrials stocks have also moved lower in today’s trading session.

Currently, SP500 is trying to settle below the support level at 7450 – 7460. In case this attempt is successful, SP500 will get to the test of the 50 MA at 7437. A move below the 50 MA will open the way to the test of the next support level at 7370 – 7380.

On the upside, a move above the 7500 level will push SP500 towards the nearest resistance level, which is located in the 7540 – 7550 range.

NASDAQ Dives As Traders Rush To Sell AI-Related Stocks

NASDAQ is losing ground amid strong pullback in the tech sector. Sandisk, which is down by -14%, is the biggest loser in the NASDAQ index today. The stock suffered a sell-off as traders rushed to take profits near historic highs.

From a big picture point of view, traders worry about valuations of AI-related stocks. Investors have enjoyed a major rally in the tech sector and are worried about a potential pullback.

NASDAQ moved below the support level at 29,350 – 29,400 and made an attempt to settle below the 29,200 level. If NASDAQ settles below 29,200, it will head towards the next support, which is located in the 29,800 – 29,850 range.

On the upside, a move above the 29,400 level will push NASDAQ towards the 50 MA at 29,718. In case NASDAQ climbs above the 50 MA, it will get to the test of the resistance at 29,800 – 29,850.

Dow Jones Gains Ground Amid Sector Rotation

Dow Jones  gained ground as most stocks in the index moved higher in today’s trading session. Apple, which was up by 4.6%, was the biggest gainer in the Dow Jones index today.

Dow Jones climbed above the previous resistance at 52,100 – 52,200 and is trying to settle above the resistance level at 52,700 – 52,800. In case this attempt is successful, Dow Jones will get to the test of the 53,000 level. RSI remains in the moderate territory, so there is plenty of room to gain upside momentum in case the right catalysts emerge.

On the support side, a move below the 52,100 level will push Dow Jones towards the 50 MA at 52,001. If Dow Jones declines below the 50 MA, it will head towards the support level at 51,600 – 51,700.

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