NASDAQ Index, SP500, Dow Jones Forecasts – Stocks Pulls Back As Trump Terminates Trade Talks With Canada

SP500

SP500 pulled back from session highs as U.S. President Donald Trump terminated trade talks with Canada. Trump noted that Canada would put a Digital Services Tax on American tech companies, so it was time to end all trade discussions with the country. Trump plans to announce tariffs on Canada in the seven days periiod. Today, traders also focused on PCE and Core PCE Index reports. PCE Price Index increased by +0.1% month-over-month in May, in line with analyst estimates. Core PCE Price Index grew by +0.2%, compared to analyst consensus of +0.1%. Personal Income declined by -0.4% month-over-month in May, while Personal Spending decreased by -0.1%. Both reports missed analyst expectations. Traders also had a chance to take a look at the final reading of Michigan Consumer Sentiment report. The report showed that Consumer Sentiment increased from 52.2 in May to 60.7 in June.

SP500 faced resistance at 6185 – 6195 and pulled back towards the 6150 level as traders rushed to take profits after Trump announced that trade negotiations with Canada would be terminated. In case SP500 settles below 6150, it will head towards the nearest support level, which is located in the 6090 – 6100 range.

NASDAQ

NASDAQ has also moved lower as traders reacted to Trump’s comments on Canada.

Currently, NASDAQ is trying to settle below the 22,400 level. In case this attempt is successful, NASDAQ will move towards the support level at 22,250 – 22,300. A move below this level will push NASDAQ towards the next support at 21,950 – 22,000.

Dow Jones

Dow Jones remains in the positive territory as traders focus on recent developments in trade talks with Canada.

If Dow Jones settles below the 43,600 level, it will head towards the support at 43,300 – 43,400. RSI is in the overbought territory, so the risks of a pullback are increasing.

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