NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Dives 3.4% As Trump Puts Pressure On Powell

SP500

SP500 is under strong pressure as Donald Trump continues to attack Fed Chair Jerome Powell, trying to force him to cut interest rates. Traders worry about Fed’s independence and sell U.S. assets. U.S. dollar tested multi-year lows as traders focused on Trump’s efforts to remove Powell. The yield of 10-year Treasuries climbed above the 4.40% level as bond traders bet that recent events will boost longer-term inflation in the U.S. The pullback is broad, and all market sectors are moving lower in today’s trading session. Technology stocks are among the biggest losers in the SP500 index today. The tech sector is extremely sensitive to fluctuations in risk appetite, so it’s not surprising to see that traders rushed to sell tech stocks amid worries about Fed’s independence.

SP500 has recently moved below the support at 5170 – 5180 and is trying to settle below the 5110 level. In case this attempt is successful, SP500 will head towards the next support level, which is located in the 5000 – 5010 range. RSI is in the oversold territory, but there is enough room to gain additional downside momentum in the near term.

NASDAQ

NASDAQ pulled back as the appetite for risk declined. Tesla and NVIDIA were among the biggest losers in the NASDAQ index today. Both companies suffer from rising tensions in U.S. – China relations.

If NASDAQ settles below the support at 17,700 – 17,750, it will head towards the next support level at 17,100 – 17,150.

Dow Jones

Dow Jones is losing ground amid broad sell-off in the equity markets. The index settled below the support level at 38,400 – 38,500 and is trying to settle below the 37,900 level.

In case this attempt is successful, Dow Jones will move towards the next support, which is located in the 37,300 – 37,400 range.

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