NASDAQ Index, SP500, Dow Jones Forecasts – Stocks Dive Amid Inflation Concerns

SP500

SP500 is under strong pressure as traders react to the higher-than-expected Core PCE Price Index report. The report showed that Core PCE Price Index increased by +0.4% month-over-month in February, compared to analyst forecast of +0.3%. Traders worry that trade wars will boost inflation. Personal income increased by +0.8% on a month-over-month basis in February, compared to analyst consensus of +0.4%. Personal Spending grew by +0.4%, while analysts expected that it would increase by +0.5%. Today, traders also had a chance to take a look at the final reading of Michigan Consumer Sentiment report. The report indicated that Consumer Sentiment decreased from 64.7 in February to 57.0 in March, compared to analyst forecast of 57.9. Today’s pullback was broad, and most market sectors moved lower. However, utilities stocks managed to gain some ground as traders reacted to the strong pullback in Treasury yields.

SP500 is trying to settle below the support at 5590 – 5600. In case this attempt is successful, SP500 will head towards the next support level at 5510 – 5520.

NASDAQ

NASDAQ retreats as Alphabet, Amazon, and Meta are down by more than 4%. Traders sell tech stocks amid worries about the slowdown of the economy.

NASDAQ settled below the support level at 19,600 – 19,650 and is trying to settle below the 19,300 level. In case this attempt is successful, NASDAQ will move towards the next support at 19,100 – 19,150.

Dow Jones

Dow Jones tests new lows amid broad pullback in the equity markets. Currently, Dow Jones is trying to settle below the support at 41,700 – 41,800.

A successful test of this support level will open the way to the test of the next support, which is located in the 41,100 – 41,200 range. RSI is in the oversold territory, so the risks of a rebound are increasing.

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