NASDAQ Index, SP500, Dow Jones Forecasts – Stocks Retreat As Traders Digest Banks’ Reports

SP500

SP500 is under strong pressure as traders react to banks’ earnings reports and news from China. JPMorgan Chase, which is down by 6%, is among the biggest losers in SP500 today. JPMorgan Chase beat analyst estimates on both earnings and revenue. However, the market did not like the report, while CEO Jamie Dimon noted that he would not be surprised if the economy hit a wall. Citigroup and Wells Fargo, which have also presented their quarterly reports,  found themselves under pressure in today’s trading session. Meanwhile, tech stocks were moving lower amid reports that China would ban foreign chips from its telecom networks by 2027. Today, traders also focused on Michigan Consumer Sentiment report, which showed that Consumer Sentiment declined from 79.4 in March to 77.9 in April. Importantly, year-ahead inflation expectations increased from 2.9% to 3.1%. Treasury yields were moving lower, but this move did not provide any support to SP500.

The nearest support level for SP500 is located in the 5100 – 5110 range. In case SP500 settles below the 5100 level, it will move towards the next support at 5035 – 5050.

NASDAQ

NASDAQ is losing ground as traders sell tech stocks due to the news from China. Intel, Advanced Micro Devices, Micron, and NVIDIA are among the biggest losers in the NASDAQ index today. China is a big market for tech firms, and recent developments indicate that the country plans to replace foreign products with domestically-made chips in most industries.

In case NASDAQ settles below the support at 18,000 – 18,050, it will head towards the next support level, which is located in the 17,450 – 17,500 range.

Dow Jones

Dow Jones tests new lows amid a broad sell-off in the equity markets. The pullback is led by JPMorgan Chase and Intel.

Currently, Dow Jones is trying to settle below the support at 37,800 – 37,900. RSI is in the oversold territory, so the risks of a rebound are increasing.

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