NASDAQ Index, SP500, Dow Jones Forecasts – Stocks Test New Lows Amid Inflation Worries

SP500

SP500 is under pressure as traders react to inflation reports. Inflation Rate increased from 3.2% in February to 3.5% in March, compared to analyst consensus of 3.4%. Core Inflation Rate remained unchanged at 3.8%, while analysts projected that it would decline to 3.7%. Not surprisingly, bond traders rushed to sell U.S. government bonds after the release of inflation reports. The yield of 2-year Treasuries settled above the 4.95% level, while the yield of 10-year Treasuries settled above 4.55%. It remains to be seen whether Treasury yields will stop at current levels as inflation reports highlighted inflation risks. Thus, Fed may be forced to keep the federal funds rate at current levels for longer. Today, traders also focused on FOMC Minutes. The Minutes did not contain any surprises. The Fed wants to see further improvements in the inflationary picture before starting to cut rates.

SP500 settled below the previous support at 5180 – 5190. In case SP500 settles below the 5150 level, it will head towards the next support, which is located in the 5100 – 5110 range.

NASDAQ

NASDAQ pulled back as traders focused on inflation data. Interestingly, NVIDIA was the biggest gainer in the NASDAQ index today. Traders are ready to buy the shares of the AI leader despite rising Treasury yields.

Currently, NASDAQ is trying to settle below the support at 18,000 – 18,050. In case this attempt is successful, NASDAQ will head towards the next support level at 17,450 – 17,500.

Dow Jones

Dow Jones tested new lows amid a broad pullback in the equity markets. Most Dow Jones components have found themselves under pressure as traders reacted to inflation data.

Dow Jones has moved below the support at 38,500 – 38,550. If Dow Jones stays below this level, it will head towards the next support at 37,800 – 37,900.

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