NASDAQ Index, SP500, Dow Jones Forecasts – Stocks Pull Back As WTI Oil Climbs Above $90

SP500 Pulled Back As Traders Reacted To The Disappointing Non Farm Payrolls Report

SP500 rebounds from session lows as traders focus on geopolitical developments and disappointing job market data.

WTI oil gained as much as 16% as Kuwait was forced to cut oil production due to the closure of the Strait of Hormuz. The country is running out of storage. Other countries in the Middle East may soon follow suit as there are just 9 empty supertankers in the Gulf.

President Donald Trump demanded unconditional surrender from Iran. White House press secretary Karoline Leavitt noted that U.S. expected to achieve goals in Iran with 4-6 weeks. In case the Stait of Hormuz remains closed for six weeks, the global economy will find itself under material pressure.

Today, traders also had a chance to take a look at the Non Farm Payrolls report for February. The report showed that U.S. economy lost -92,000 jobs, compared to analyst forecast of +59,000 jobs. The previous report was revised from 130,000 to 126,000.

Unemployment Rate increased from 4.3% in January to 4.4% in February, compared to analyst forecast of 4.3%. Disappointing job market reports put additional pressure on SP500 today.

Retail Sales decreased by -0.2% month-over-month in January, compared to analyst forecast of -0.3%. Business inventories grew by +0.1% month-over-month in December, in line with analyst estimates.

Not surprisingly, energy stocks were among the gainers in today’s trading session. However, traders were rather cautious as high oil prices may hurt the economy.

Financial and consumer cyclical stocks were among the biggest losers. Basic materials stocks have also moved lower despite the rally in precious metals markets.

The nearest resistance level for SP500 is located in the 6780 – 6790 range. In case SP500 climbs above the 6790 level, it will head towards the 50 MA at 6853. A move above the 50 MA will push SP500 towards the resistance at 6870 – 6880.

NASDAQ Moved Lower As WTI Oil Climbed Above The $90 Level

NASDAQ has also managed to move away from session lows as some traders were ready to buy the dip.

However, general market sentiment remained bearish as traders focused on the epic rally in the oil markets.

Chip stocks were among the biggest losers in the NASDAQ index today. Interestingly, software stocks continued to rebound.

Currently, NASDAQ is trying to settle above the support at 24,700 – 24,750. In case NASDAQ manages to stay above the 24,750 level, it will move towards the 50 MA at 24,931. In case NASDAQ settles above the 50 MA, it will head towards the next resistance at 25,200 – 25,250.

Dow Jones Tested Support At 47,100 – 47,200

Dow Jones has also found itself under pressure in today’s trading session. Boeing, which was up by 3.7%, was the only notable gainer in the Dow Jones index today.

It should be noted that traders have not panicked despite the major rally in the oil markets, which could have a big impact on the global economy. Traders are trying to buy almost every dip, which shows that the market may be ready for a strong upside move when the situation in the Middle East stabilizes.

In case Dow Jones settles above the 47,500 level, it will head towards the nearest resistance, which is located in the 47,900 – 48,000 range. A successful test of the resistance at 47,900 – 48,000 will push Dow Jones towards the next resistance at 48,700 – 48,800.

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