NASDAQ Index, SP500, Dow Jones Forecasts – Stocks Retreat Amid Inflation Worries

SP500

SP500 is losing ground as traders focus on Michigan Consumer Sentiment report, which showed that year-ahead inflation expectations increased from 3.3% to 4.3%. This is a significant increase in inflation expectations which may force the Fed to be more hawkish. Treasury yields moved higher as bond traders reacted to the report. The yield of 2-year Treasuries climbed above the 4.27% level, while the yield of 10-year Treasuries tested the 4.50% level. Today, traders also focused on the Non Farm Payrolls report. The report showed that U.S. economy added 143,000 jobs in January, compared to analyst forecast of 170,000. Unemployment Rate declined from 4.1%  in December to 4.0% in January, while analysts expected that it would remain unchanged. The pullback was broad, and most market sectors moved lower in today’s trading session.

The nearest support level for SP500 is located in the 6000 – 6010 range. In case SP500 declines below the 6000 level, it will gain additional downside momentum and move towards the next support level, which is located in the 5910 – 5920 range.

NASDAQ

NASDAQ retreats as traders focus on inflation expectations and take profits after the recent rebound. Amazon, which was down by 4%, was among the worst performers in the NASDAQ index today. The stock found itself under pressure as the company’s first-quarter guidance missed analyst estimates.

Currently, NASDAQ is trying to settle below the support at 21,550 – 21,600. In case this attempt is successful, NASDAQ will head towards the next support level at 21,150 – 21,200.

Dow Jones

Dow Jones moved lower amid broad pullback in the equity markets. Amazon, Nike, and Apple were the worst performers in the Dow Jones index today.

If Dow Jones stays below the 44,400 level, it will head towards the next support level, which is located in the 44,000 – 44,100 range.

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