NASDAQ Index, SP500, Dow Jones Forecasts – Stocks Retreat As 30-Year Treasury Yields Hit New Highs

SP500

SP500 suffered a sell-off as traders focused on rising Treasury yields and ISM Manufacturing PMI report. The yield of 30-year Treasuries made an attempt to settle above the 5.00% level amid worries about long-term sustainability of the U.S. debt. It should be noted that European bond markets suffered a strong sell-off, so the pullback was broad across global bond markets. ISM Manufacturing PMI increased from 48.0 in July to 48.7 in August, compared to analyst forecast of 49. Numbers below 50 show contraction. The weaker-than-expected report put additional pressure on SP500 in today’s trading session. Historically, September is a challenging month for stocks, so traders were ready to hit the sell button when negative catalysts emerged. All market sectors moved lower in today’s trading session. The pullback was led by real estate stocks, which found themselves under strong pressure amid rising Treasury yields.

SP500 declined below the previous support at 6430 – 6440 and is trying to settle below the 6400 level. In case this attempt is successful, SP500 will head towards the next support, which is located in the 6340 – 6350 range.

NASDAQ

NASDAQ is losing ground amid sell-off in the tech sector. NVIDIA, which is down by 2.6%, is among the biggest losers in the NASDAQ index today.

NASDAQ moved below the support at 23,200 – 23,300 and is trying to settle below the 23,100 level. A move below this level will push NASDAQ towards the next support at 22,950 – 23,000. RSI has recently moved into oversold territory, but there is enough room to gain momentum in the near term.

Dow Jones

Dow Jones is under pressure amid broad pullback in the equity markets. Currently, Dow Jones is trying to settle below the support at 45,000 – 45,100.

A successful test of the 45,000 level will open the way to the test of the next support, which is located in the 44,500 – 44,600 range.

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