NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Tests New Lows As AMD Dives 17%

SP500

SP500 is losing ground as the sell-off in the tech sector continues. Traders are worried about high AI spending. In addition, traders worry that AI will hurt the business of software companies. Consumer defensive and real estate stocks were among the gainers today amid rising demand for safe-haven assets. Energy stocks gained some ground as traders reacted to the rally in the oil markets. Today, traders had a chance to take a look at the ADP Employment Change report for January. The report showed that private businesses added 22,000 jobs, compared to analyst forecast of 48,000. ISM Services PMI decreased from 54.4 in December to 53.8 in January, compared to analyst consensus of 53.5. Numbers above 50 show expansion. It should be noted that traders have mostly ignored the reports and focused on AI-related fears.

Currently, SP500 is trying to settle below the support at 6870 – 6880. In case this attempt is successful, SP500 will move towards the next support level, which is located in the 6790 – 6800 range.

NASDAQ

NASDAQ is under strong pressure as traders sell tech stocks. Advanced Micro Devices, which is down by 17%, is the worst performer in the NASDAQ index today. The stock suffered a sell-off despite the better-than-expected earnings report as the company’s AI revenue outlook was disappointing.

A successful test of the support at 24,700 – 24,800 will open the way to the test of the next support level at 24,250 – 24,300.

Dow Jones

Dow Jones is mostly flat amid rising demand for safe-haven assets. Amgen, which was up by 8%, was the biggest gainer in the Dow Jones index today.

The technical picture remains unchanged as Dow Jones needs to settle above the key resistance level at 49,500 – 49,600 to gain momentum in the near term. RSI is in the moderate territory, so there is plenty of room to gain upside momentum in case the right catalysts emerge.

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