NASDAQ Index, SP500, Dow Jones Forecasts – Stocks Retreat As Barkin Says Recent Inflation Data Was Less Encouraging

SP500

SP500 is losing ground as traders react to comments of Richmond Fed President Thomas Barkin. He said that recent inflation data has been a little less encouraging and argued that it was a good idea for the Fed to take its time before cutting rates. It looks that profit-taking also serves as a significant catalyst for the pullback. Stocks are trading near historic highs, so traders are sensitive to any news that could be seen as bearish. Today, traders also had a chance to take a look at the Initial Jobless Claims report, which showed that Initial Jobless Claims increased from 212,000 to 221,000. The current pullback is broad, and almost all market segements are moving lower. Energy stocks are mostly flat, supported by rising oil markets.

Currently, SP500 is trying to settle below the support at 5180 – 5190. In case this attempt is successful, SP500 will head towards the next support level, which is located in the 5100 – 5110 range.

NASDAQ

NASDAQ pulled back as traders rushed to take some profits off the table after hawkish comments from Fed speakers. Advanced Micro Devices, which was down by more than 6%, was the worst performer in the NASDAQ index today. The stock found itself under strong pressure as traders reduced their long positions in high-flying tech leaders.

A move below the support at 18,000 – 18,050 will push NASDAQ towards the next support level at 17,450 – 17,500.

Dow Jones

Dow Jones is under pressure amid a broad pullback in the equty markets. The pullback is led by Salesforce, which is down by 2.7%.

From the technical point of view, Dow Jones is moving towards the support at 38,500 – 38,550. RSI has recently moved into the oversold territory, but there is enough room to gain additional downside momentum in the near term.

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