NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Retreats As Tech Stocks Decline

SP500

SP500 is losing ground as traders react to PMI reports and focus on Powell’s comments. Manufacturing PMI declined from 53.0 in August to 52 in September, in line with analyst estimates. Numbers above 50 show expansion. Services PMI pulled back from 54.5 to 53.9, compared to analyst forecast of 54. Composite PMI decreased from 54.6 to 53.6, while analysts expected that it would remain unchanged at 54.6. Traders used the weaker-than-expected reports as an excuse to take some profits off the table near historic highs. Fed Chair Jerome Powell has mostly reiterated his previous message, which was made during the press conference after Fed Interest Rate Decision. He also noted that U.S. stocks were overvalued, which served as an additional bearish catalyst for SP500. Tech stocks were among the biggest losers in the SP500 index today. Meanwhile, energy stocks gained strong upside momentum as traders focused on the rally in the oil markets.

In case SP500 declines below the 6650 level, it will head towards the 50 MA at 6633. A move below the 50 MA will push SP500 towards the next support at 6610 – 6620.

NASDAQ

NASDAQ retreats amid sell-off in the tech sector, which is mostly driven by profit-taking. NVIDIA, which is down by 2.8%, is among the biggest losers in the NASDAQ index today.

If NASDAQ declines below the 24,500 level, it will move towards the support at 24,350 – 24,400. A move below 24,350 will open the way to the test of the next support level, which is located in the 23,950 – 24,000 range.

Dow Jones

Dow Jones moved lower amid broad pullback in the equity markets. The strong performance of Boeing stock, which gained 2.3%, provided some support to the Dow Jones index today.

A successful test of the support at 46,100 – 46,200 will open the way to the test of the next support level at 45,700 – 45,800.

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