NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Retreats As NVIDIA Dives 5.5%

SP500

SP500 is under pressure as tech stocks retreat ahead of NVIDIA’s earnings report. NVIDIA will report its quarterly results tomorrow, after the market close. Today, NVIDIA is down by 5.5% as traders take some profits off the table ahead of the report, as the company may miss expectations. Today, traders also focused on CB Leading Index report, which showed that CB Leading Index declined by 0.4% month-over-month in January, compared to analyst consensus of -0.3%. Treasury yields moved lower, but this move did not provide any support to major indices as traders were focused on profit-taking in the tech sector.

Currently, SP500 is trying to settle below the support at 4960 – 4970. In case this attempt is successful, SP500 will gain additional downside momentum and move towards the next support level, which is located in the 4900 – 4910 range.

NASDAQ

The tech-heavy NASDAQ suffered a sell-off as traders took profits in high-flying tech stocks. Advanced Micro Devices and Tesla were among the biggest losers in the NASDAQ index today. Tesla stock remains weak amid worries about strong competition from Chinese EV makers, while Advanced Micro Devices stock is falling in sympathy with NVIDIA.

NASDAQ is testing the nearest support level at 17,450 – 17,500. In case this test is successful, NASDAQ will head towards the next support at 17,150 – 17,200. RSI remains in the moderate territory, so there is enough room to gain momentum.

Dow Jones

Dow Jones did not gain downside momentum due to the strong performance of Walmart stock, which was up by 3.5% after the encouraging earnings report. Consumer Defensive stocks were among the leaders today, providing support to Dow Jones.

In case Dow Jones manages to stay above the support at 38,500 – 38,550, it will move towards the recent highs near 38,900.

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