NASDAQ Index, SP500, Dow Jones Forecasts – Stocks Rebound From Session Lows As Trump Comments On Iran Negotiations

SP500 Remains Stuck Below The 6600 Level

SP500 rebounded from session lows as traders focused on PMI data and Trump’s comments on Iran.

Manufacturing PMI increased from 51.6 in February to 52.4 in March, exceeding the analyst consensus of 51.3. Services PMI declined from 51.7 to 51.1, compared to analyst forecast of 51.5. Numbers above 50 show expansion. The reports showed that the manufacturing sector gained upside momentum. The services sector slowed down but remained in the growth territory.

President Trump has recently said that U.S. was negotiating with Iran. According to Trump, Rubio and Vance were among negotiators. Iran agreed that it would not have a nuclear weapon.

Interestingly, oil markets did not pull back as traders reacted to Trump’s comments. WTI oil settled above the $91.00 level, while Brent oil traded above $103.00. Traders are not ready to believe that the war in the Middle East would end soon. That said, Trump’s comments provided some support to equity markets.

Energy stocks were among the biggest gainers today as traders focused on the rally in the oil markets. Basic materials stocks have also managed to gain strong momentum as traders bet on a rebound in precious metals markets.

Tech stocks have found themselves under pressure, which indicates that the market remained cautious. Tech stocks are sensitive to changes in risk appetite.

Currently, SP500 is stuck near the support level at 6580 – 6590. If SP500 manages to settle above the 6590 level, it will head towards the 50 MA at 6643. In case SP500 climbs above the 50 MA, it will move towards the resistance level at 6690 – 6700.

NASDAQ Moved Lower As Traders Sold Software Stocks

NASDAQ pulled back amid falling demand for tech stocks. Software stocks have found themselves under pressure as traders worried that AI will destroy the business of such companies.

Atlassian and Workday were among the biggest losers in the NASDAQ index today.  From a big picture point of view, the recent attempt to rebound in software stocks has come to an end. This sector failed to gain any momentum and looks ready to test new lows amid AI-related worries.

If NASDAQ manages to settle above the 24,200 level, it will head towards the nearest resistance level, which is located in the 24,350 – 24,400 range. On the support side, a successful test of the support at 23,950 – 24,000 will open the way to the test of the 23,600 level.

Dow Jones Attempts To Settle Above The 46,400 Level

Dow Jones managed to gain some ground as demand for industrials and consumer defensive stocks increased.

Salesforce, which was down by 5.5%, was the biggest loser in the Dow Jones index today. The stock moved lower amid strong pullback in the software sector.

Dow Jones is trying to settle above the resistance level at 46,300 – 46,400. If this attempt is successful, Dow Jones will gain additional upside momentum and move towards the next resistance, which is located in the 47,100 – 47,200 range. RSI is in the moderate territory, so there is plenty of room to gain momentum in case the right catalysts emerge.

On the support side, a move below the 46,000 level will push Dow Jones towards the support level at 45,700 – 45,800.

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