NASDAQ Index, SP500, Dow Jones Analysis – Regional Bank Shares Sell-Off Weighs On Major Indices

Key Insights

• The sell-offs in regional bank and energy stocks put material pressure on SP500. 
• NASDAQ has also declined, although lower Treasury yields provided some support to tech stocks. 
• Dow Jones settled near the 33,700 level. 

SP500

SP500 declined amid a sharp sell-off in the shares of regional banks. Zions Bancorporation, Comerica, and KeyCorp were down by more than 10% in today’s trading session. Traders are worried that more banks would fall after First Republic Bank. However, financial stocks were not the worst performers today. Energy stocks dived as traders reacted to the sell-off in the oil markets.

SP500 managed to rebound from session lows and is trying to settle back above the 4115 level. If this attempt is successful, it will move towards the resistance at 4150. A move above this level will open the way to the test of the resistance at 4175.

R1:4115 – R2:4150 – R3:4175

S1:4090 – S2:4070 – S3:4050

NASDAQ

NASDAQ has also found itself under some pressure, although the pullback in Treasury yields provided some support to the yield-sensitive tech stocks.

If NASDAQ moves back above 13,140, it will head towards the resistance at 13,250. A successful test of the resistance at 13,250 will push NASDAQ towards the 13,400 level.

R1:13,140 – R2:13,250 – R3:13,400

S1:13,000 – S2:12,900 – S3:12,750

Dow Jones

Dow Jones pulled back amid a broad sell-off in the equity markets. Chevron, which is down by more than 4% today, was the worst performer in the Dow Jones index today. American Express declined 4% as traders focused on the banking crisis.

Dow Jones settled near the support level at 33,700. In case Dow Jones declines below this level, it will head towards the next support at 33,500. A move below 33,500 will push Dow Jones towards the support at 33,300.

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