NASDAQ Index, SP500, Dow Jones Forecasts – Dow Jones Retreats As Boeing Dives 8%

Key Insights

• SP500 is losing ground as traders focus on rising Treasury yields. 
• NASDAQ pulled back below the 16,800 level. 
• Dow Jones tests new lows as Boeing is down by 8%. 

SP500

SP500 is losing ground as traders react to the disappointing NY Empire State Manufacturing Index report, which indicated that NY Empire State Manufacturing Index declined from -14.5 in December to -43.7 in January, compared to analyst consensus of -5. Rising Treasury yields have put additional pressure on SP500 during today’s trading session. The yield of 2-year Treasuries settled above the 4.20% level, while the yield of 10-year Treasuries moved above 4.05%. Treasury yields are moving higher as traders reduce their bets on dovish Fed. The crisis in Red Sea may boost global inflation due to supply chain problems. Thus, Fed may be forced to hold rates at current levels instead of cutting them in March. This scenario is bearish for stocks, although it remains to be seen whether SP500 is ready for a pullback.

The nearest support level for SP500 is located in the 4730 – 4750 range. A move below 4730 will push SP500 towards the support at 4575 – 4600.

NASDAQ

NASDAQ is losing ground as traders take some profits in tech stocks. Apple is among the biggest losers in the NASDAQ index today. The stock is down by 2% today as the company offers iPhone discounts in China.

If NASDAQ moves below the 16,700 level, it will head towards the nearest support at 16,400 – 16,500.

Dow Jones

Dow Jones is under pressure amid a broad pullback in the equity markets. Boeing, which is down by 8%, is the worst performer in the Dow Jones index today. The stock remains under strong pressure due to problems of 737 MAX 9.

A move below the 37,200 level will push Dow Jones towards the support at 36,900 – 37,000.

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