NASDAQ Index, SP500, Dow Jones Forecasts – Stocks Pull Back As Oil Soars

SP500 Moved Lower Amid Rising Geopolitical Tensions

SP500 pulled back as traders focused on the rally in the oil markets, which was triggered by Iran’s attack against UAE.

Iran delivered strikes against an oil facility in Fujairah, breaking the fragile ceasefire in the Middle East. Earlier, President Trump announced that “Project Freedom” initiative will help tankers get through the Strait of Hormuz.

WTI oil rallied above the $105.00 level. Brent oil made an attempt to settle above $115.00 as traders evaluated the risks of a new round of war in the Middle East.

At the time of writing, UAE has not retaliated against Iran. President Trump did not comment on the issue. The key question is whether U.S. will restart the military operation against Iran due to attacks against UAE.

Gulf states have condemned Iran’s actions but did not respond. It should be noted that oil prices have started to move away from session highs as Iran’s actions did not get an immediate response from U.S. or UAE.

Today, traders had a chance to take a look at the Factory Orders report. The report showed that Factory Orders grew by +1.5% month-over-month in March, compared to analyst forecast of +0.5%. The better-than-expected report did not have a material impact on market dynamics as traders remained focused on the situation in the Middle East.

Energy stocks gained ground, supported by rising oil and natural gas prices. Basic materials stocks were among the worst performers today as traders focused on the strong pullback in precious metals markets.

SP500 managed to rebound from session lows and moved towards the resistance level at 7215 – 7225. If SP500 climbs above the 7225 level, it will head towards the resistance level at 7270 – 7280.

On the support side, SP500 needs to settle below the support at 7170 – 7180 to gain additional downside momentum in the near term.

NASDAQ Pulled Back From Historic Highs

NASDAQ is losing ground as traders take some profits off the table near historic highs.

AI-related demand provides material support to the NASDAQ index, and many traders will likely use the pullback to boost their positions in AI stocks. Micron, which is up by 6.9%, is the biggest gainer in the NASDAQ index today.

The nearest resistance level for NASDAQ is located in the 27,750 – 28,000 range. If NASDAQ climbs above the 28,000 level, it will gain additional upside momentum and move towards the 28,500 level.

Dow Jones Declined As Oil Prices Rallied

Dow Jones is under pressure as traders react to the rally in the oil markets. Home Depot, which is down by 3.2%, is the worst performer in the Dow Jones index today.

From the technical point of view, Dow Jones attempts to settle below the support at 49,000 – 49,100. If Dow Jones pulls back below the 49,000 level, it will move towards the next support level at 48,200 – 48,300. RSI is in the moderate territory, so there is plenty of room to gain additional downside momentum in case the right catalysts emerge.

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