NASDAQ Index, SP500, Dow Jones Forecasts – Stock Index Futures Slide As Greenland Tensions Escalate

SP500

SP500 futures pulled back as traders reacted to Donald Trump’s plans to impose tariffs on countries that do not support his idea to acquire Greenland. U.S. stock markets are closed in observation of MLK, Jr. Day, but traders had a chance to react in the futures marekts. French President Macron suggested that EU should use the anti-coercion instrument, the most powerful tool in the EU toolbox. However, German Chancellor Merz said that he was trying to prevent the use of this tool due to Germany’s reliance on exports. Anyway, traders are worried about a potential new round of the trade war between the U.S. and the EU. Rising geopolitical tensions provided material support to precious metals markets. Gold and silver tested historic highs, so basic materials stocks may outperform when markets open tomorrow.

SP500 futures found support in the 6870 – 6880 range and are moving towards the 6900 level. A move above 6900 will open the way to the test of the resistance at 6940 – 6950.

NASDAQ

NASDAQ found itself under strong pressure as traders focused on trade tensions. It should be noted that NASDAQ has faced a wave of profit-taking in recent trading sessions, so Greenland tensions may serve as a material catalyst for a pullback.

A successful test of the support at 25,200 – 25,250 will push NASDAQ towards the next support level at 24,800 – 24,850.

Dow Jones

Dow Jones futures have also moved lower in today’s trading session. Most likely, major indices will be extremely sensitive to comments from U.S. and EU officials in the upcoming days, so traders should be prepared for fast moves.

A move below the 48,700 level will open the way to the test of the next support level, which is located in the 47,900 – 48,000 range.

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