NASDAQ Index, SP500, Dow Jones Forecasts – Stocks Retreat As Trump Raises Global Tariffs To 15%

SP500 Pulls Back As Traders Focus On Trump’s Tariff Plan

SP500 is losing ground amid tariff uncertainty. President Donald Trump announced that he would raise the 10% worldwide tariffs to the 15% level.

It should be noted that the EU paused the ratification process of the trade deal with the U.S. after the Supreme Court ruled that Trump’s tariffs were illegal. Trump warned that countries that “play games” will face higher tariffs.

The new tariff plan is based on Section 122 of the 1974 Trade Act. The president may impose tariffs for 150 days without congressional approval. Most likely, the U.S. administration will search for other ways to get back to the tariff regime that was working before the Supreme Court decision. Thus, traders should be prepared for more news on the tariff front.

Today, traders also had a chance to take a look at the Dallas Fed Manufacturing Index report for February. The report showed that Dallas Fed Manufacturing Index improved from -1.2 in January to +0.2 in February, compared to analyst forecast of -3.2.

The report has also indicated that businesses expected that manufacturing activity would increase six months from now. The market has mostly ignored the report as traders focused on tariff issues.

Factory Orders decreased by -0.7% month-over-month in December, compared to analyst forecast of -0.5%. Chicago Fed National Activity Index improved from -0.21 in December to +0.18 in January.

Consumer defensive stocks gained some ground amid rising demand for safe-haven assets. Basic materials stocks have also moved higher as gold and silver markets tested new highs.

Consumer cyclical stocks found themselves under pressure as traders reacted to the 15% worldwide tariff announcement. Financial stocks were also among the biggest losers in today’s trading session.

Currently, SP500 is trying to settle below the 6850 level. In case this attempt is successful, SP500 will move towards the nearest support level, which is located in the 6800 – 6810 range.

NASDAQ Dives Amid Sell-Of In The Tech Sector

NASDAQ retreats as traders sell software stocks amid AI-related worries. Datadog, Workday, and Shopify are among the biggest losers in today’s trading session.

Traders remain worried that AI will destroy the businesses of software companies.

From the technical point of view, NASDAQ attempts to settle below the support at 24,700 – 24,750. In case NASDAQ manages to settle below the 24,700 level, it will head towards the next support, which is located in the 24,200 – 24,250 range.

Dow Jones Retreats As IBM Dives 10%

Dow Jones suffered a sell-off amid broad pullback in the equity markets. IBM, which was down by 10%, was the biggest loser in the Dow Jones index today.

The stock tested multi-month lows as traders reacted to Trump’s decision to raise the global tariff to 15%, which may hurt the company’s international earnings. Traders also worried about the new AI tool from Anthropic, which could help modernize legacy COBOL code.

Salesforce  was also among the biggest losers amid sell-off in the software sector. The stock has already lost more than 30% of its value since the beginning of the year.

Dow Jones has quickly moved towards the nearest support level, which is located in the 48,700 – 48,800 range. If Dow Jones manages to settle below the 48,700 level, it will head towards the next support at 48,000 – 48,100. RSI is close to the oversold territory, but there is enough room to gain momentum in case the right catalysts emerge.

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