NASDAQ Index, SP500, Dow Jones Forecasts – Stocks Retreat Amid Crash In Silver Markets

SP500

SP500 is losing ground as traders focus on the historic crash in precious metals markets and react to Trump’s Fed Chair pick. Silver is down by as much as 34%, which is the worst trading session in history. The move was triggered by profit-taking, but later turned into a catastrophe as margin calls hit traders. Such price swings always have an impact on global markets, so it’s not surprising to see that U.S. stocks continue to move lower. President Donald Trump announced that he would nominate Kevin Warsh to be the next Fed Chair. U.S. dollar gained strong upside momentum as forex traders reacted to the announcement. Today, traders also had a chance to take a look at Producer Prices data for December. PPI increased by +0.5% on a month-over-month basis, exceeding the analyst estimate of +0.2%. Core PPI grew by +0.7%, compared to analyst forecast of +0.2%. Rising Producer Prices indicate that Fed may stay hawkish in the upcoming months, which is bearish for stocks. Today’s pullback is broad, and all market sectors have found themselves under pressure. Basic materials stocks are among the biggest losers as traders react to the unprecedented sell-off in precious metals markets.

In case SP500 manages to settle below the 6900 level, it will head towards the nearest support at 6870 – 6880.

NASDAQ

NASDAQ pulls back amid falling demand for tech stocks. Western Digital, which is down by 11.8%, is among the worst performers in the NASDAQ index today. The stock retreats as traders rush to take profits after the better-than-expected earnings report.

A move below the 25,500 level will push NASDAQ towards the support at 25,200 – 25,250.

Dow Jones

Dow Jones declined amid broad pullback in the equity markets. The rally in Verizon stock, which is up by 10%, did not provide sufficient support to the Dow Jones index today.

In case Dow Jones manages to settle below the support at 48,700 – 48,800, it will head towards the next support level, which is located in the 47,900 – 48,000 range.

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