NASDAQ Index, SP500, Dow Jones Forecasts – Stocks Pull Back As NFP Report Highlights Economic Slowdown

SP500

SP500 pulled back as traders reacted to the disappointing Non Farm Payrolls report. The report indicated that the U.S. economy added just +22,000 jobs in August, compared to analyst forecast of +75,000. Unemployment Rate increased from 4.2% in July to 4.3% in August, in line with analyst estimates. The reports showed that the job market was under pressure, so the Fed could be forced to cut rates aggressively. Treasury yields dived as bond traders focused on weak job market data. The yield of 2-year Treasuries declined towards the 3.50% level, while the yield of 10-year Treasuries settled below 4.10%. Falling Treasury yields did not provide support to stocks as traders worried about the slowdown of the economy. Energy stocks were among the biggest losers in the SP500 index today as traders reacted to the strong pullback in the oil markets. Basic materials stocks gained ground as gold markets tested historic highs.

In case SP500 settles back below the 50 MA at 6467, it will head towards the nearest support level, which is located in the 6430 – 6440 range.

NASDAQ

NASDAQ pulled back from session highs amid profit-taking. Lululemon, which was down by 18%, was the worst performer in the NASDAQ index today. The stock suffered a sell-off as the company cut its revenue outlook.

The nearest support level for NASDAQ is located in the 23,450 – 23,500 range. A move below the 23,450 level will push NASDAQ towards the next support at 23,200 – 23,250.

Dow Jones

Dow Jones is losing ground amid broad pullback in the equity markets. NVIDIA and Microsoft are among the biggest losers in the Dow Jones index today.

In case Dow Jones declines below the support at 45,000 – 45,100, it will head towards the next support level at 44,500 – 44,600. RSI is in the moderate territory, and there is plenty of room to gain momentum in the near term.

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