NASDAQ Index, SP500, Dow Jones Forecasts – Stocks Retreat As Israel – Iran Conflict Intensifies

SP500

SP500 is under pressure as traders focus on the conflict in the Middle East. Israel attacked Iran’s nuclear-related facilities and top military commanders. Iran has recently launched its rockets against Israel. Oil prices skyrocketed as traders reacted to the news. Higher oil prices may lead to higher inflation and force the Fed to be more hawkish, which will be bearish for SP500. Today, traders also had a chance to take a look at Michigan Consumer Sentiment report for June. The report showed that Consumer Sentiment improved from 52.2 in May to 60.5 in June, compared to analyst consensus of 53.5. Year-ahead inflation expectations decreased from 6.6% to 5.1%. While Consumer Sentiment data was rather bullish, traders remained focused on the situation in the Middle East. Not surprisingly, energy stocks were among the biggest gainers in the SP500 today. Other sectors have found themselves under pressure.

Currently, SP500 is trying to settle below the support at 6000 – 6010. In case this attempt is successful, SP500 will move towards the next support level at 5910 – 5920.

NASDAQ

NASDAQ is losing ground as traders sell riskier assets amid rising geopolitical tensions. From a big picture point of view, traders take profits after the strong rally from April lows.

The nearest support level for NASDAQ is located in the 21,450 – 21,500 range. A move below the 21,450 level will open the way to the test of the support at 21,100 – 21,150.

Dow Jones

Dow Jones tests the support level at 42,000 – 42,100 amid broad pullback in the equity markets.

RSI remains in the moderate territory, so there is plenty of room to gain momentum in case the right catalysts emerge. If Dow Jones settles below the 42,000 level, it will head towards the next support level at 41,200 – 41,300.

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