NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Is Losing Ground As Pullback Continues

Key Insights

• SP500 tests support at 4730 as traders reduce bets on dovish Fed after Barkin’s comments. 
• NASDAQ is trying to settle below 16,400 as traders continue to take profits in tech stocks. 
• Dow Jones made an attempt to settle below 37,400. 

SP500

SP500 is losing ground as traders react to the hawkish comments of Fed’s Barkin, who said that rate hikes were still possible as demand remained strong. Most likely, Barkin is trying to calm markets that started to price in aggressive rate cuts from the Fed. Today, traders also focused on ISM Manufacturing PMI report, which showed that ISM Manufacturing PMI increased from 46.7 in November to 47.4 in December. The report showed that U.S. manufacturing sector continued to contract. JOLTs Job Openings increased from 8.73 million in November to 8.79 million in December, compared to analyst consensus of 8.85 million. Energy stocks were among the leaders today as traders focused on the strong rally in the oil markets, which was triggered by rising tensions in the Middle East. The yield-sensitive Real Estate stocks were moving lower as Treasury yields contined to rebound from recent lows.

In case SP500 settles below the 4730 level, it will gain additional downside momentum and move towards the next support at 4575 – 4590.

NASDAQ

NASDAQ tested new lows as the pullback continued. Traders continue to take profits in high-flying tech stocks after the strong rally in the last two months of 2023. Tesla, which is down by 3.4%, is among the biggest losers in the NASDAQ index today.

Currently, NASDAQ is trying to settle below the support at 16,400 – 16,500. In case this attempt is successful, NASDAQ will move towards the next support level at 15,800 – 15,900. It should be noted that RSI is in the extremely overbought territory, so the risks of a rebound are increasing.

Dow Jones

Dow Jones is losing ground amid a broad pullback in the equity markets. Traders cut their bets on dovish Fed, which is bearish for stocks.

If Dow Jones manages to settle below the support at 37,400 – 37,500, it will head towards the next support level, which is located in the 36,900 – 37,000 range.

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