NASDAQ Index, SP500, Dow Jones Forecasts – SP500 And NASDAQ Fall As U.S. Export Curbs May Hurt Tech Profits

SP500

SP500 retreats amid profit-taking in tech stocks. Multiple sectors are moving higher in today’s trading session, but the strong sell-off in the tech sector put significant pressure on SP500. Today, traders also focused on the economic data. Housing Starts increased by 3.0% month-over-month in June, while Building Permits grew by 3.4%. Industrial Production increased by 0.6% month-over-month in June, compared to analyst consensus of +0.3%.

The nearest support level for SP500 is located in the 5590 – 5600 range. A move below the 5590 level will open the way to the test of the next support at 5520 – 5530.

NASDAQ

NASDAQ tested new lows as traders rushed to sell tech stocks. The major sell-off in ASML Holding stock was the key reason for NASDAQ’s move. ASML is down by 12.5% as traders focus on the prospect of additional U.S. restrictions on doing business with China. Traders are worried that rising tensions in U.S. – China relations will hurt profits of tech companies. Not surprisingly, chip stocks like Advanced Micro Devices, Arm Holdings, NVIDIA, and Micron are among the biggest losers in the NASDAQ index today.

NASDAQ has recently settled below the support at 20,000 – 20,100 and is trying to settle below the 19,800 level. In case this attempt is successful, NASDAQ will head towards the next support at 19,600 – 19,650.

Dow Jones

Dow Jones tests new highs amid rising demand for healthcare and consumer stocks. Johnson & Johnson and UnitedHealth Group are the biggest gainers in the Dow Jones index today. Johnson & Johnson is up by 3.8% as traders react to the better-than-expected earnings report.

RSI remains in the extremely overbought territory, so the risks of a pullback are significant. However, some traders may want to shift funds from tech stocks towards defensive sectors, which could provide additional support to Dow Jones in the near term.

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