NASDAQ Index, SP500, Dow Jones Analysis – Stocks Pull Back From Multi-Week Highs

Key Insights

• SP500 declined towards the 4100 level after an unsuccessful attempt to settle above 4140.
• NASDAQ pulled back towards 13,100 despite falling Treasury yields. 
• Dow Jones moved below the 33,400 level amid a strong sell-off in Caterpillar shares. 

SP500

SP500 pulled back towards the 4100 level as traders took some profits off the table after the recent rally.

Today, traders focused on the JOLTs Job Openings report, which indicated that the number of job openings declined to 9.93 million in February. Job openings reached the lowest level since 2021, and it looks that Fed rate hikes have finally managed to put material pressure on the job market. Previously, Fed noted that the tight job market served as one of the inflation drivers.

Treasury yields moved lower as traders believe that the Fed will be forced to cut rates this year to provide additional support to the economy. However, falling Treasury yields did not push stocks higher as traders used the weaker-than-expected report as an excuse to take profits after the strong rally. In addition, it looks that markets remain worried about a potential recession.

Today’s pullback is broad, and most market segments have found themselves under pressure. Utilities stocks were among the best performers today as traders searched for safe-haven assets amid a broad sell-off.

NASDAQ

NASDAQ pulled back towards 13,100 amid profit-taking. Lower Treasury yields are bullish for the yield-sensitive tech stocks but traders decided to take some profits after the release of the weak JOLTs Job Openings report.

From a big picture point of view, the general trend remains bullish. NASDAQ needs to stay above the psychologically important 13,000 level to have a chance to gain additional upside momentum in the upcoming trading sessions.

Dow Jones

Dow Jones declined below the 33,400 level amid a broad pullback in the markets. Caterpillar, which was down by 5%, was the worst performer in the Dow Jones index today. Today’s pullback is a normal correction after the strong move, and the current trend remains intact.

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