NASDAQ Index, SP500, Dow Jones Forecasts – Stocks Retreat As Oil Prices Keep Moving Higher

SP500 Is Under Pressure As GDP Growth Rate Misses Estimates

SP500 retreats as traders react to economic reports and focus on the war in the Middle East.

JOLTs Job Openings increased from 6.55 million in December to 6.946 million in January, compared to analyst consensus of 6.7 million. The better-than-expected jobs report was a surprise to the market.

Michigan Consumer Sentiment report indicated that Consumer Sentiment declined from 56.6 in February to 55.5 in March, compared to analyst forecast of 55.

University of Michigan commented: “Gasoline prices have exerted the most immediate impact felt by consumers, though the magnitude of passthrough to other prices remains highly uncertain”.

Year-ahead inflatoin expectations remained unchanged at 3.4%. Long-run inflation expectations pulled back to 3.2%. Inflation expectations have stabilized, but it remains to be seen whether they will stay at current levels in case oil prices stay above the $100 level for a few weeks.

PCE Price Index increased by +2.8% year-over-year in January, compared to analyst forecast of 2.9%. Personal Income grew by +0.4% in January, while Personal Spending has also increased by +0.4%.

The fourth-quarter GDP Growth Rate was +0.7%, compared to analyst forecast of +1.4%. The weaker-than-expected GDP Growth Rate report put additional pressure on SP500.

From a big picture point of view, traders stay focused on rising oil prices. The economic reports have less impact as they present a picture of the past, while the market is concerned about the future.

Treasury yields continue to move higher as traders bet that Fed will keep rates unchanged due to inflation risks.

Utilities stocks were among the biggest gainers today as demand for safe-haven assets increased. Energy stocks have also moved higher as traders reacted to rising oil prices.

Basic materials stocks moved lower as traders focused on the pullback in precious metals markets. Tech stocks have also found themselves under pressure as the appetite for risk declined.

Currently, SP500 is trying to settle below the support at 6640 – 6650. In case this attempt is successful, SP500 will head towards the next support level, which is located in the 6580 – 6590 range.

NASDAQ Pulls Back As The Appetite For Risk Declines

NASDAQ is losing ground amid falling demand for tech stocks. Meta, which is down by 4%, is among the biggest losers in the NASDAQ index today.

Demand for harware stocks stays strong. Western Digital and Seagate are among the biggest gainers in the index.

NASDAQ attempts to settle below the support level at 24,350 – 24,400. If NASDAQ manages to settle below the 24,350 level, it will move towards the next support at 23,850 – 23,900. RSI is in the moderate territory, so there is plenty of room to gain additional momentum in the near term.

Dow Jones Moves Towards The Support At 46,300 – 46,400

Dow Jones is losing some ground amid broad pullback in the equity markets. It should be noted that rising demand for defensive sectors has provided some support to the Dow Jones index today.

The nearest support level for Dow Jones is located in the 46,300 – 46,400 range. If Dow Jones manages to settle below the 46,300 level, it will move towards the next support at 45,700 – 45,800. On the upside, a move above the 46,800 level will push Dow Jones towards the nearest resistance level at 47,100 – 47,200.

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