NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Retreats As NVIDIA Dives 4.7%

SP500

SP500 is under pressure as traders react to strong economic reports. JOLTs Job Openings increased from 7.839 million in October to 8.098 million in November, compared to analyst forecast of 7.70 million. ISM Services PMI improved from 52.1 in November to 54.1 in December, while analysts expected that it would grow to 53.3. Treasury yields moved higher as bond traders bet on hawkish Fed. The U.S. economy stays strong, so Fed may pause before it will be ready to continue the rate cut cycle. Tech stocks were among the biggest losers in SP500 today. Meanwhile, energy stocks gained upside momentum as traders focused on the rally in the oil markets, which was driven by fears of potential supply disruptions due to sanctions.

The nearest support level for SP500 is located in the 5910 – 5920 range. In case SP500 declines below the 5910 level, it will move towards the next support at 5830 – 5840. RSI is in the moderate territory, and there is enough room to gain momentum in case the right catalysts emerge.

NASDAQ

NASDAQ is losing ground as NVIDIA  is down by 4.7%. The stock moved away from historic highs as traders reacted to the product presentation by CEO Jensen Huang. It looks that market’s expectations were set too high. Microstrategy, which is down by 10%, is the biggest loser in the NASDAQ index today. The stock found itself under strong pressure as Bitcoin declined below the $97,000 level.

In case NASDAQ settles below the nearest support at 21,150 – 21,200, it will head towards the next support level, which is located in the 20,750 – 20,800 range.

Dow Jones

Dow Jones is losing some ground amid broad pullback in the equity markets. Interestingly, more than half of Dow Jones stocks moved higher in today’s trading session, and the pullback was mostly driven by the sell-off in NVIDIA stock.

A move below the 42,700 level opens the way to the test of the next support level at 42,100 – 42,200.

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