NASDAQ Index, SP500, Dow Jones Forecasts – Stocks Retreat As Traders Take Profits After PCE Report

SP500

SP500 pulls back as traders focus on PCE Price Index report. The report showed that PCE Price Index increased by +0.2% month-over-month in July, in line with analyst consensus. Personal Spending grew by +0.5% month-over-month in July, while Personal Income increased by +0.4%. Both reports met analyst estimates. Today, traders also had a chance to take a look at the final reading of Michigan Consumer Sentiment report. The report showed that Consumer Sentiment decreased from 61.7 in July to 58.2 in August, compared to analyst forecast of 58.6. Tech stocks were among the biggest losers in the SP500 index today. Consumer defensive stocks gained ground amid rising demand for safe-haven assets. From a big picture point of view, traders decided to take some profits off the table near historic highs.

The nearest support level for SP500 is located in the 6430 – 6440 range. In case SP500 settles below this level, it will head towards the next support at 6340 – 6350.

NASDAQ

NASDAQ is under strong pressure amid sell-off in tech stocks. Traders are worried about inflation. PCE and Core PCE reports met analyst estimates, but it was not sufficient to provide any support to stocks.

NASDAQ moved below the support at 23,450 – 23,500 and is trying to settle below the 50 MA at 23,404. If this attempt is successful, NASDAQ will move towards the next support level at 23,200 – 23,250.

Dow Jones

Dow Jones is losing some ground amid broad pullback in the equity markets. Rising demand for healthcare and consumer defensive stocks provided some support to Dow Jones index in today’s trading session.

In case Dow Jones manages to settle back above the 45,500 level, it will head towards the resistance, which is located near recent highs in the 45,700 – 45,800 range.

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