NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Tumbles As Moderna Dives 20.7%

SP500

SP500 is under pressure amid strong sell-off in the tech sector. Traders are searching for safe-haven assets, so utilities, consumer defensive and healthcare sectors have managed to gain some ground. Today, traders focused on ISM Manufacturing PMI report, which showed that ISM Manufacturing PMI decreased from 48.5 in June to 46.8 in July. S&P Global Manufacturing PMI declined from 51.6 to 49.6, compared to analyst forecast of 49.5. Initial Jobless Claims increased from 235,000 to 249,000. Initial Jobless Claims data shows why Powell looked concerned about the situation in the labor market during the recent press conference.

SP500 has recently managed to settle below the support at 5450 – 5465. RSI is in the moderate territory, so there is plenty of room to gain momentum in case the right catalysts emerge. If SP500 settles below 5425, it will move towards the support at 5390 – 5400.

NASDAQ

NASDAQ retreats amid strong sell-off in chip stocks. Advanced Micro Devices, Micron, and NVIDIA are among the biggest losers in the NASDAQ index today. Moderna  is down by 20.7% afer the company lowered its 2024 outlook.

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

Dow Jones

Dow Jones is losing ground amid broad pullback in the equity markets. Boeing, which is down by 7.1%, is the biggest loser in the Dow Jones index today. Traders react to yesterday’s earnings report and the appointment of a new CEO.

In case Dow Jones stays below the support at 40,300 – 40,400, it will move towards the next support level at 39,700 – 39,800. On the upside, Dow Jones needs to climb back above the 50 MA at 40,469 to have a chance to gain sustainable momentum in the near term.

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