NASDAQ Index, SP500, Dow Jones Forecasts – Stocks Pull Back As Traders Focus On Fed Policy Outlook

SP500

SP500 is losing ground as traders worry that Fed Chair Jerome Powell may be less dovish than previously expected. Treasury yields moved higher as traders reduced bets on aggressive rate cuts from the Fed. Today, traders also had a chance to take a look at the New Home Sales report. The report indicated that New Home Sales increased by +20.5% month-over-month in August, compared to analyst consensus of -1.8%. The better-than-expected report did not provide any support to stocks as traders focused on Fed policy outlook. Energy stocks were among the biggest gainers in the SP500 index today amid strong rally in the oil markets, which was driven by the bullish EIA report. Basic materials and tech stocks found themselves under strong pressure amid worries about a potential pause in the rate cut cycle.

Currently, SP500 is trying to settle below the 50 MA at 6643. In case this attempt is successful, SP500 will move towards the next support level, which is located in the 6610 – 6620 range.

NASDAQ

NASDAQ moved lower as demand for tech stocks declined. It should be noted that the pullback was not strong, and NASDAQ has started to rebound from session lows.

In case NASDAQ manages to settle back above the 24,500 level, it will head towards the nearest resistance, which is located in the 24,750 – 24,800 range.

Dow Jones

Dow Jones is trying to settle below the support at 46,100 – 46,200 amid broad pullback in the equity markets. AMGEN, which is down by 2.7%, is the worst performer in the Dow Jones index today.

If Dow Jones manages to settle below the 46,100 level, it will head towards the next support level, which is located in the 45,700 – 45,800 range.

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