NASDAQ Index, SP500, Dow Jones Forecasts – Stocks Pull Back As Traders Focus On Geopolitics

SP500

SP500 pulls back as traders react to economic reports and stay focused on geopolitical developments. President Biden has recently said that U.S. was discussing potential Israeli strikes on Iran’s oil facilities. Oil soared 4% as traders reacted to the news, which was bullish for energy stocks. Most other sectors found themselves under pressure as traders cut risks amid geopolitical uncertainty. ISM Services PMI increased from 51.5 in August to 54.9 in September, compared to analyst consensus of 54.9. S&P Global Services PMI declined from 55.7 to 55.2, while analysts expected that it would drop to 55.4. Numbers above 50 show expansion. Overall, both reports highlighted the strength of the services sector.

The nearest support level for SP500 is located in the 5660 – 5680 range. In case SP500 manages to settle below the 5660 level, it will head towards the next support level at 5550 – 5570.

NASDAQ

NASDAQ moved lower as traders took some profits off the table due to geopolitical tensions. Tesla, which was down by 3.8%, was the biggest loser in the NASDAQ index today. The stock found itself under pressure as Tesla recalled more than 27,000 Cybertrucks due to rear-view camera delay.

If NASDAQ declines below the support at 19,500 – 19,600, it will head towards the next support level, which is located in the 18,800 – 18,900 range.

Dow Jones

Dow Jones is losing ground as 27 out of the 30 index components moved lower in today’s trading session. Interestingly, Chevron  is up by just 0.60% despite the strong rally in the oil markets.

A move below the 41,800 level will push Dow Jones towards the nearest support level at 41,300 – 41,400. In case Dow Jones manages to settle below 41,300, it will head towards the next support level, which is located in the 40,500 – 40,600 range.

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