NASDAQ Index, SP500, Dow Jones Forecasts – Stocks Pull Back From Session Highs As Treasury Yields Rise

Vladimir Zernov
Published: Apr 1, 2024, 19:12 GMT+00:00

Key Points:

  • SP500 moved back below the 5250 level as traders reacted to ISM Manufacturing PMI report.
  • NASDAQ pulled back after an unsuccessful attempt to settle above the 18,400 level.
  • Dow Jones declined towards the 39,500 level.
NASDAQ Index, SP500, Dow Jones Forecasts

In this article:


SP500 010424 4h Chart

SP500 pulls back as traders react to the better-than-expected ISM Manufacturing PMI report. The report indicated that ISM Manufacturing PMI increased from 47.8 in February to 50.3 in March, compared to analyst consensus of 48.4. Treasury yields rallied as bond traders bet on a more hawkish Fed after the release of the report. The yield of 2-year Treasuries settled above 4.7%, while the yield of 10-year Treasuries climbed above the 4.30% level. In such environment, stock traders decided to take some profits off the table. Today, traders also focused on the final reading of the S&P Global Manufacturing PMI report. The report showed that S&P Global Manufacturing PMI decreased from 52.2 in February to 51.9 in March, while analysts expected that it would grow to 52.5. This report did not have a material impact on market dynamics as traders focused on the ISM report.

SP500 has recently made an attempt to settle above the resistance at 5260 – 5270 but lost momentum and pulled back below the 5250 level. If SP500 settles below the 50 MA at 5239, it will gain additional downside momentum and move towards the support at 5180 – 5190.


NASDAQ 010424 4h Chart

NASDAQ moved lower after an unsuccessful attempt to settle above the resistance at 18,350 – 18,400. Micron, which was up by 4.7%, was the best performer in the NASDAQ index today. The stock tested new highs amid strong demand for AI-related companies.

NASDAQ has made multiple attempts to settle above the 18,400 level, but these attempts yielded no results. This is a worrisome development for the bulls. A successful test of the 50 MA at 18,282 may trigger a pullback.

Dow Jones

Dow Jones
Dow Jones 010424 4h Chart

Dow Jones is losing ground as the majority of the index components are moving lower. 3M, which is up by 6.2%, is the only notable gainer in the Dow Jones index today.

If Dow Jones moves below the 50 MA at 39,533, it will head towards the nearest support, which is located in the 39,250 – 39,300 range.

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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