NASDAQ Index, SP500, Dow Jones Forecasts – Stocks Retreat As Geopolitical Risks Rise

SP500 Pulls Back As Traders Focus On The Rally In The Oil Markets

SP500 moved lower as oil markets rallied amid rising geopolitical risks. Traders worry about a potential conflict between the U.S. and Iran.

President Trump noted that he wanted to make a “meaningful deal” with Iran, but markets were concerned about the massive U.S. military buildup in the Middle East.

A potential U.S. – Iran conflict will likely trigger a huge rally in the oil markets, which will put pressure on major indices.

Today, traders also focused on economic reports. Initial Jobless Claims report showed that 206,000 Americans filed for unemployment benefits in a week, compared to analyst forecast of 225,000.

The better-than-expected job market data could have provided material support to SP500, but traders remained focused on geopolitics.

Traders also had a chance to take a look at the Pending Home Sales data for January. The report indicated that Pending Home Sales declined by -0.8% month-over-month, compared to analyst consensus of +1.3%. On a year-over-year basis, Pending Home Sales increased by +2.4%.

Not surprisingly, energy stocks were among the biggest gainers today as traders reacted to the rally in the oil markets. WTI oil climbed above the $66.00 level, while Brent oil made an attempt to settle above the $72.00 level.

Utilities stocks have also managed to gain some ground amid rising demand for safe-haven assets.

Financial stocks were among the biggest losers today. Traders sold financial stocks as Blue Owl Capital restricted withdrawals from one of its private credit funds. Traders worry that the situation in the private credit sector could be worse than previously expected.

Tech stocks also moved lower as traders’s appetite for risk declined due to geopolitical developments.

SP500 has recently made an attempt to settle below the 6850 level. In case SP500 manages to settle below this level, it will move towards the nearest support at 6800 – 6810.

On the upside, the nearest resistance level for SP500 is located in the 6870 – 6880 range. If SP500 climbs back above 6880, it will head towards the next resistance at 6940 – 6950.

NASDAQ Tests Support At 24,700 – 24,800

NASDAQ pulled back as demand for tech stocks declined. Booking , which was down by 8.2%, was the worst performer in the NASDAQ index today.

The stock suffered a sell-off as traders reacted to the company’s quarterly report. The report exceeded estimates on both earnings and revenue but showed that travel demand was cooling down.

Currently, NASDAQ is trying to settle below the support at 24,200 – 24,250. In case this attempt is successful, NASDAQ will move towards the next support level at 24,200 – 24,250. RSI is in the moderate territory, and there is plenty of room to gain momentum in the near term.

Dow Jones Moves Lower Amid Pullback In The Financial Sector

Dow Jones is losing ground amid broad pullback in the equity markets. Goldman Sachs and American Express are the biggest losers in the Dow Jones index today. These shares moved lower as demand for financial stocks declined.

From the technical point of view, Dow Jones failed to settle above the resistance at 49,500 – 49,600 and made an attempt to settle below the 49,200 level.

In case Dow Jones declines below 49,200, it will head towards the nearest support, which is located in the 48,700 – 48,800 range.

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