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NASDAQ Index, SP500, Dow Jones Forecasts – Stocks Pull Back Amid Inflation Fears

By:
Vladimir Zernov
Published: Mar 14, 2024, 19:14 GMT+00:00

Key Points:

  • SP500 pulled back towards the 5150 level as PPI exceeded analyst expectations.
  • NASDAQ declined as Tesla tested multi-month lows.
  • Dow Jones made an attempt to settle below 38,800.
NASDAQ Index, SP500, Dow Jones Forecasts

In this article:

SP500

SP500
SP500 140324 4h Chart

SP500 pulls back as traders react to Producer Prices data for February. PPI increased by 0.6% on a month-over-month basis, compared to analyst consensus of +0.3%. Core PPI grew by 0.3%, compared to analyst consensus of +0.2%. Together with the recent CPI reports, PPI reports show that inflation is not under control. Most likely, Fed will be cautious at the upcoming meetings and keep rates at high levels as prices have started to move higher. It should be noted that oil prices tested multi-month highs after IEA raised demand forecast for 2024. Rising oil prices lead to higher inflation, so the recent developments in the oil markets present an additional problem for the Fed. Treasury yields tested weekly highs as bond traders prepared for a more hawkish Fed. The yield of 2-year Treasuries moved towards the 4.70% level, while the yield of 10-year Treasuries settled near 4.30%. Today, traders also focused on the Retail Sales report for February. The report indicated that Retail Sales increased by 0.6%, compared to analyst consensus of +0.8%.

SP500 failed to settle above the resistance at 5180 – 5190 and moved towards the 5150 level. In case SP500 settles below 5150, it will head towards the nearest support level, which is located in the 5100 – 5110 range.

NASDAQ

NASDAQ
NASDAQ 140324 4h Chart

NASDAQ is losing ground as the sell-off in Tesla stock continues. Currently, Tesla is down by 4.5% amid concerns about the near-term outlook for EV sales. Advanced Micro Devices and NVIDIA are moving lower as traders continue to take profits near historic highs.

If NASDAQ settles below the support at 18,000 – 18,050, it will move towards the next support level at 17,450 – 17,500.

Dow Jones

Dow Jones
Dow Jones 140324 4h Chart

Dow Jones pulls back as most stocks in the index are moving lower. Interestingly, Microsoft, Amazon, and Apple received strong support in today’s trading session. However, their performance did not provide sufficient support to the Dow Jones index.

A successful test of the 50 MA at 38,820 will push Dow Jones towards the support at 38,500 – 38,550.

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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