NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Falls As Crowdstrike Dives 10.3%

SP500

SP500 pulls back as tech stocks retreat. Traders are worried that high AI spending would hurt profits of tech companies. In addition, traders cut their risks ahead of the Fed decision, which will be released tomorrow. Today, traders also focused on economic reports. CB Consumer Confidence increased from 97.8 in June to 100.5 in July, compared to analyst consensus of 99.7. JOLTs Job Openings declined from 8.23 million in May to 8.18 million in June, compared to analyst forecast of 8 million. Case-Shiller Home Price index increased by 1.0% month-over-month in May, while analysts expected that it would grow by 1.2%. From a big picture point of view, the pullback in tech stocks served as the key catalyst for SP500 today.

If SP500 stays below the 5450 level, it will move towards the next support at 5350 – 5370. RSI is in the moderate territory, so there is plenty of room to gain momentum in case the right catalysts emerge.

NASDAQ

NASDAQ tested new lows amid broad pullback in tech sector. Crowdstrike, which continues to suffer from the recent global IT outage, was the biggest loser in the NASDAQ index today. The stock was down by 10.3% as Delta Air Lines has reportedly hired lawyers to seek damages caused by the outage.

From the technical point of view, NASDAQ settled below the previous support at 19,000 – 19,100 and is moving towards the next support level at 18,500 – 18,600.

Dow Jones

Dow Jones gained some ground despite the sell-off in Merck stock. The shares are down by 9.2% as traders react to the company’s earnings report. Merck beat analyst estimates on earnings and revenue but cut its full-year guidance.

If Dow Jones manages to settle above the 40,800 level, it will move towards the resistance at 41,300 – 41,400.

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