NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Dives 2.1% Amid Concerns Over Treasury Yields

Key Insights

• SP500 falls below 4260 support due to rate hike concerns.
• NASDAQ faces pressure from rising Treasury yields, Amazon down 4%.
• Dow Jones tests new lows as the strong pullback continues.

SP500

SP500 pulled back below the support at 4260 amid rate hike worries. JOLTs Job Openings increased to 9.6 million in August, compared to analyst consensus of 8.8 million. The strong jobs data pushed Treasury yields to new highs. The yield of 10-year Treasuries increased to 4.80%, while the yield of 30-year Treasuries moved towards 4.94%. These are the highest levels since 2007, so it’s not surprising to see that traders are worried about high interest rates.

In case SP500 stays below the 4260 level, it will head towards the support at 4175 – 4200. RSI remains in the moderate territory, so there is enough room to gain additional downside momentum.

NASDAQ

NASDAQ is trying to settle below the support at 14,560 as traders focus on rising Treasury yields. Amazon, which is down by 4%, is among the biggest losers in the NASDAQ index today.

In case NASDAQ manages to settle below the 14,560 level, it will head towards the support, which is located in the 14,150 – 14,250 range. As in the case of SP500, RSI has not reached the oversold territory, so NASDAQ has a good chance to gain additional momentum in case the right catalysts emerge.

Dow Jones

Dow Jones tests new lows amid a broad sell-off in the equity markets. Goldman Sachs, which is down by more than 4%, is the biggest loser in the Dow Jones index. Traders worry that rising Treasury yields will hurt the company’s profits.

If Dow Jones settles below the 33,000 level, it will head towards the next support, which is located in the 32,600 – 32,700 area.

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