NASDAQ Index, SP500, Dow Jones Forecasts – Stocks Remain Under Pressure As Traders React To FOMC Minutes

SP500

SP500 is losing ground as traders react to FOMC Minutes. The Minutes indicated that Fed expected inflation to rise in the near term. Importantly, Fed believes that domestic businesses and consumers mostly pay for tariffs rather than foreign exporters. Meanwhile, President Trump urged Fed’s Cook to resign due to mortgage fraud allegation, raising worries about Fed independence. Not surprisingly, traders decided to take some profits off the table ahead of Jackson Hole Symposium. Traders worry that Powell’s remarks would be hawkish and put additional pressure on stocks. Tech and consumer cyclical stocks were among the biggest losers in today’s trading session. Consumer defensive stocks moved higher amid rising demand for safe-haven assets.

Currently, SP500 is trying to settle below the 6400 level. In case this attempt is successful, SP500 will move towards the support at 6340 – 6350. RSI remains in the moderate territory, so there is enough room to gain momentum in the near term.

NASDAQ

NASDAQ managed to rebound from session lows and climbed towards the resistance at 23,200 – 23,300. Intel, which was down by 7.3%, was the biggest loser in the NASDAQ index today. The stock suffered a sell-off as U.S. government may take a 10% in the company in exchange for the money promised under CHIPS Act.

If NASDAQ manages to settle back above the 23,250 level, it will move towards the resistance at 23,450 – 23,500.

Dow Jones

Dow Jones is flat amid rising demand for consumer defensive stocks. Walmart, Coca-Cola and Procter & Gamble are among the biggest gainers in the Dow Jones index today.

The technical picture remains unchanged as Dow Jones is stuck between the support at 44,500 – 44,600 and the resistance at 45,000 – 45,100. A move above 45,100 will provide Dow Jones with an opportunity to gain additional upside momentum.

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