NASDAQ Index, SP500, Dow Jones Forecasts – Stocks Mixed As Powell Says Interest Rates Could Stay High For Longer

SP500

SP500 is trying to rebound after yesterday’s sell-off. Treasury yields are moving higher as bond traders prepare for a more hawkish Fed. The yield of 2-year Treasuries has recently made another attempt to settle above the 5.00%, while the yield of 10-year Treasuries settled above the 4.65% level. Today, Fed Chair Jerome Powell said that elevated inflation will likely delay Fed’s interest rate cuts. He noted that recent inflation data did not give Fed greater confidence. Interestingly, hawkish comments did not put significant pressure on major indices. Most likely, some traders were focused on buying stocks after the pullback and ignored Powell’s comments and rising Treasury yields. Today, traders also focused on economic reports. Housing Starts declined by 14.7% month-over-month in March, compared to analyst consensus of -0.8%. Building Permits decreased by 4.3%, while analysts expected that they would drop by 0.7%.

The nearest support level for SP500 is located in the 5035 – 5050 range. A move below 5035 will open the way to the test of the support at 4930 – 4950.

NASDAQ

NASDAQ rebounded from lows in a choppy trading session but did not manage to gain strong upside momentum. Tesla, which is down by 3%, is the biggest loser in the NASDAQ index today. Traders remain worried about rising competition in the EV market and sell Tesla stock.

From the technical point of view, NASDAQ needs to settle above the 17,800 level to gain additional upside momentum and move towards the nearest resistance at 18,000 – 18,050.

Dow Jones

Dow Jones remains stuck near the support at 37,800 – 37,900 as traders evaluate Powell’s comments. Today, Dow Jones is supported by the strong performance of UnitedHealth Group, which is up by 5.5% after the better-than-expected earnings report.

If Dow Jones fails to settle back above the 37,900 level, it will head towards the next support, which is located in the 37,100 – 37,200 range.

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