NASDAQ Index, SP500, Dow Jones Forecasts – Stocks Mixed As Traders React To ISM Services PMI Data

Vladimir Zernov
Published: Apr 3, 2024, 19:19 UTC

Key Points:

  • SP500 moved higher as traders reacted to the weaker-than-expected ISM Services PMI report.
  • NASDAQ gained ground as traders bought tech stocks after the recent pullback.
  • Dow Jones moved lower due to the weak performance of Intel stock.
NASDAQ Index, SP500, Dow Jones Forecasts

In this article:


SP500 030424 4h Chart

SP500 gained ground as traders reacted to ISM Services PMI report, which indicated that ISM Services PMI declined from 52.6 in February to 51.4 in March. Analysts expected that ISM Services PMI would grow to 52.7. The report provided some support to stocks as traders bet that the potential slowdown in the services sector will make the Fed less hawkish. However, it should be noted that ISM Services PMI has remained in the expansion territory in 45 of the last 46 months. Treasury yields tested new highs but pulled back after the release of the ISM Services PMI report. This pullback provided additional support to major indices. Consumer defensive and utilities sectors were the only losers in SP500 today. Energy and basic materials stocks were among the biggest gainers as traders focused on the rally in commodity markets.

From the technical point of view, SP500 settled in a range between the support at 5180 – 5190 and the resistance at 5260 – 5270.


NASDAQ 030424 4h Chart

NASDAQ moved higher as traders used the recent pullback as an opportunity to buy tech stocks. Micron, which was up by 4%, was among the biggest gainers in the NASDAQ index today. The stock rallied as traders reacted to the earthquake in Taiwan, which may boost DRAM prices.

In case NASDAQ climbs above the 50 MA at 18,286, it will get to the test of the nearest resistance level, which is located in the 18,350 – 18,400 range.

Dow Jones

Dow Jones
Dow Jones 030424 4h Chart

Dow Jones moved lower due to the sell-off in Intel stock. Intel is down by 7.5% after the company’s filing indicated that its foundry division lost $7 billion.

At this point, it looks that Dow Jones settled below the previous support at 39,250 – 39,300. A move below the 39,000 level will open the way to the test of the support at 38,550 – 38,500.

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

About the Author

Vladimir is an independent trader and analyst with over 10 years of experience in the financial markets. He is a specialist in stocks, futures, Forex, indices, and commodities areas using long-term positional trading and swing trading.

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