NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Dives 4.3% Amid Recession Worries

SP500

SP500 suffered a strong sell-off as traders worried about a potential recession. Donald Trump warned about a potential impact of trade wars with Mexico, Canada, and China. In addition, he did not rule out a possibility of recession and said that the economy faced “a period of transition”. Treasury yields pulled back as bond traders increased their bets on recession and focused on potential rate cuts from the Fed. The yield of 2-year Treasuries declined towards the 3.90% level, while the yield of 10-year Treasuries pulled back towards 4.20%. The pullback was led by tech stocks, which have found themselves under huge pressure in today’s trading session. Not surprisingly, all market sectors moved lower as traders rushed for exits.

Currently, SP500 is trying to settle below the support at 5590 – 5600. In case this attempt is successful, it will head toward the next support level, which is located in the 5500 – 5510 range.

NASDAQ

NASDAQ is down by 4.3% as traders sell tech stocks. Strategy, which is down by 16.5%, is the worst performer in the NASDAQ index today. The stock plunged as traders reacted to the sell-off in crypto markets. Tesla  is down by 15% as analysts slashed first-quarter delivery estimates.

If NASDAQ settles below the support level at 19,300 – 19,350, it will head toward the next support at 18,900 – 18,950. RSI is in the oversold territory, but there is some room to gain momentum in the near term.

Dow Jones

Dow Jones  tests new lows amid broad pullback in the equity markets. NVIDIA, which is down by 5.1%, is the worst performer in the Dow Jones index today.

A successful test of the support at 41,700 – 41,800 will push Dow Jones towards the next support level, which is located in the 41,100 – 41,200 range.

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