NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Drops 3% As NVIDIA Dives 8.7%

SP500

SP500 is losing ground as traders react to the weaker-than-expected ISM Manufacturing PMI report. The report showed that ISM Manufacturing PMI increased from 46.8 in July to 47.2 in August, compared to analyst consensus of 47.5. The final reading of S&P Global Manufacturing PMI has also missed analyst expectations. The report indicated that S&P Global Manufacturing PMI decreased from 49.6 in July to 47.9 in August, compared to analyst forecast of 48. Tech stocks were among the biggest losers in the SP500 index today. Meanwhile, Consumer Defensive, Real Estate, and Utilities stocks managed to gain some ground as traders bought safe-haven assets.

Currently, SP500 is trying to settle below the support at 5550 – 5570. In case this attempt is successful, SP500 will head towards the next support level, which is located in the 5400 – 5420 range.

NASDAQ

NASDAQ tests new lows as traders sell chip stocks. NVIDIA, which is down by 8.7%, is among the biggest losers in the NASDAQ index today. Intel, Micron, Arm Holdings, and Advanced Micro Devices are also under strong pressure amid growth worries, which were triggered by the weak PMI reports.

NASDAQ is trying to settle below the 19,000 level. A move below 19,000 will push NASDAQ towards the support at 18,500 – 18,600. RSI is close to the oversold territory, but there is enough room to gain additional downside momentum in the near term.

Dow Jones

Dow Jones is losing ground amid broad sell-off in the equity markets. Defensive stocks like Verizon Communications and Procter & Gamble have managed to gain some ground in today’s trading session. Boeing  is down by 7.7% after Wells Fargo downgraded the stock from Equal Weight to Underweight and cut the price target from $185 to $119.

if Dow Jones stays below the 41,000 level, it will head towards the nearest support level, which is located in the 40,600 – 40,700 range.

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