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

SP500 Is Under Pressure As Oil Prices Test New Highs

SP500 is losing ground as traders focus on rising Treasury yields and react to the rally in the oil markets.

Treasury yields moved higher as traders reacted to Bessent’s comments. Treasury Secretary said that buybacks could be more than $4 billion per issue. Buybacks should provide support to markets and push Treasury yields lower, but traders are worried that yields would rise despite buybacks. The yield of 2-year Treasuries climbed towards the 4.18% level, while the yield of 10-year Treasuries tested the 4.70% level.

Oil prices tested new highs as President Trump threatened Iran’s trading partners. Bessent is expected to unveil the plan of Iran’s economic isolation next Monday. According to Bessent, it would be the greatest coordinated economic isolation in the history of the world. Oil traders doubt that U.S. efforts to put additional economic pressure on Iran would force the country to negotiations in the near term. Rising oil prices may serve as a negative catalyst for stocks as traders would worry about inflation.

Today, traders also had a chance to take a look at the Initial Jobless Claims report. The report indicated that 206,000 Americans filed for unemployment benefits in a week, compared to analyst forecast of 210,000.

Philadelphia Fed Manufacturing Index improved from 41.4 in July to 47.4 in August, compared to analyst consensus of 25. The economic reports did not have a material impact on market dynamics as traders remained focused on dynamics of bond and oil markets.

Energy stocks were among the biggest gainers today as traders focused on rising oil prices. Consumer defensive and industrials stocks found themselves under strong pressure.

SP500 settled below the previous support at 7720 – 7730 and pulled back towards the 7650 level. In case SP500 declines below 7650, it will head towards the nearest support level at 7615 – 7625. RSI is close to the oversold territory, but there is enough room to gain momentum in case the right catalysts emerge.

NASDAQ Moves Lower As Treasury Yields Rise

NASDAQ pulled back as traders worried about rising Treasury yields. Walmart, which was down by -10%, was the worst performer in the NASDAQ index today. The stock suffered a sell-off as the company issued weaker-than-expected Q3 guidance.

The nearest support level for NASDAQ is located in the 29,100 – 29,150 range. In case NASDAQ settles below the 29,100 level, it will head towards the next support level at 28,700 – 28,750.

Dow Jones Tests Support At 52,800 – 52,900

Dow Jones tested new lows amid broad pullback in the equity markets. The pullback was broad, and most stocks in the Dow Jones index moved lower in today’s trading session.

Currently, Dow Jones is trying to settle below the support level at 52,800 – 52,900. In case this attempt is successful, Dow Jones will head towards the next support, which is located in the 52,200 – 52,300 range. RSI is in the oversold territory, so the risks of a rebound are increasing.

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