NASDAQ Index, SP500, Dow Jones Forecasts – Stocks Dive On Hawkish Powell

SP500

SP500 is under strong pressure as traders focus on economic data, trade wars, and Powell’s comments. Fed Chair Powell noted that tariffs were higher than Fed expected. He added that consequences of tariff policy will likely prevent Fed from reaching its targets in the near term. He also noted that Fed may have to make difficult decisions in the future. Meanwhile, U.S. administration introduced additional restrictions on semiconductor exports to China. These restrictions impact chips from NVIDIA and AMD. Today, traders also had a chance to take a look at Retail Sales report for March. The report indicated that Retail Sales increased by +1.4% on a month-over-month basis, compared to analyst consensus of +1.3%. Retail Sales were strong as consumers rushed to buy goods ahead of tariffs. Industrial Production decreased by -0.3% month-over-month in March, compared to analyst forecast of -0.2%.

Currently, SP500 is trying to settle below the support at 5280 – 5290. In case this attempt is successful, SP500 will head towards the next support level, which is located in the 5170 – 5180 range.

NASDAQ

NASDAQ suffered a strong sell-off as traders rushed to sell tech stocks. NVIDIA and AMD, which are down by roughly 10%, are the worst performers in the NASDAQ index today. New curbs on chip exports to China will hurt the companies’ profits.

If NASDAQ manages to settle below the support at 18,100 – 18,150, it will move towards the next support level at 17,700 – 17,750. RSI remains in the moderate territory, so there is plenty of room to gain additional downside momentum in the near term.

Dow Jones

Dow Jones is losing ground amid broad sell-off in the equity markets. The sell-off in tech stocks, as well as Powell’s hawkish comments, put significant pressure on the Dow Jones index today.

The nearest support level for Dow Jones is located in the 39,300 – 39,400 range. A move below the 39,300 level will push Dow Jones towards the support at 38,400 – 38,500.

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