NASDAQ Index, SP500, Dow Jones Forecasts – Stocks Crash As China Strikes Back

SP500

SP500 is under strong pressure as China imposed additional 34% tariffs on all U.S. goods. These tariffs will be effective from April 10, leaving some room for negotiations between the world’s biggest economies. China has also put export restrictions on some rare earths and imposed restrictions on various U.S. companies. Traders worry that trade war between U.S. and China will push the economy into recession. Today, traders also focused on Fed Chair Powell’s comments. He said that the impact of tariffs would be larger than previously expected. However, Fed was not in a hurry to cut rates as the central bank needed time to evaluate the economic data and the outcome of tariff negotiations with U.S. trade partners. Traders also had a chance to take a look at Non Farm Payrolls report for March. The report indicated that U.S. economy added 228,000 jobs, compared to analyst consensus of 133,000. The labor market stays strong, so it’s not surprising to see that Fed does not want to cut rates at a time when prices may go up due to tariffs.

Currently, SP500 is trying to settle below the support at 5090 – 5100. In case this attempt is successful, it will head towards the next support level at 5020 – 5030. RSI is in the extremely oversold territory, so the risks of a rebound are increasing.

NASDAQ

NASDAQ suffered a sell-off as traders sold tech stocks amid trade war worries. Just three stocks in the index managed to gain some ground in today’s trading session.

A move below the nearest support level at 17,300 – 17,350 will push NASDAQ towards the next support at 16,950 – 17,000.

Dow Jones

Dow Jones tests new lows amid global market sell-off. Nike, which was up by 6%, was the only notable gainer in the Dow Jones index today. The stock rallied as Donald Trump said that Vietnam was ready to negotiate a deal. Nike makes 50% of its footwear in the country.

A successful test of the support at 38,400 – 38,500 will open the way to the test of the next support level at 37,900 – 38,000.

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