NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Tests New Lows As Intel Dives 27.2%

SP500

SP500 tests new lows as traders react to weak U.S. job market reports. Non Farm Payrolls report showed that U.S. economy added 114,000 jobs in July, compared to analyst consensus of 175,000. The previous report was revised from 206,000 to 179,000. Unemployment Rate increased from 4.1% in June to 4.3% in July, while analysts expected that it would remain unchanged. Factory Orders decreased by 3.3% month-over-month in June, compared to analyst consensus of -2.9%. The reports painted a picture of an economic slowdown, and traders rushed to hit their “sell” buttons. Treasury yields tested yearly lows as traders bet that Fed will be forced to cut rates aggressively due to the slowdown of the U.S. economy. However, falling yields did not provide any support to stocks today.

Currently, SP500 is trying to settle below the support at 5310 – 5325. In case this attempt is successful, it will head towards the next support level at 5220 – 5240.

NASDAQ

NASDAQ retreats as traders continue to sell tech stocks amid worries about high AI spending and elevated valuations. Intel  is down by 27.2% as the company’s report missed analyst estimates on both earnings and revenue. In addition, the company released weak guidance, announced layoffs and revealed that it would suspend its dividend.

If NASDAQ stays below the 18,500 level, it will head towards the next support level at 18,000 – 18,100.

Dow Jones

Dow Jones dives due to the major sell-off in Intel stock. Amazon, which is down by 9.2%, is another big loser in the Dow Jones index today. The stock crashed as the company issued disappointing guidance.

If Dow Jones settles below the 39,500 level, it will move towards the nearest support, which is located in the 39,000 – 39,100 range.

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