NASDAQ Index, SP500, Dow Jones Forecasts – Stocks Retreat As 30-Year Bond Auction Disappoints

Key Insights

• SP500 pulled back as traders reacted to the results of the 30-year bond auction. 
• NASDAQ declined below the 15,300 level amid worries about higher Treasury yields. 
• Dow Jones moved lower amid a broad pullback in the equity markets. 

SP500

SP500 pulls back as Treasury yields rise. The results of the 30-year Treasury auction disappointed investors, and traders are worried that demand for U.S. debt may be insufficient at current price levels. It should be noted that the yield of 30-year Treasuries have recently moved from 5.18% to 4.61% as traders bet that Fed would start cutting rates in 2024. However, the yields quickly rebounded towards the 4.80% level as investors worried that rates will stay above the levels seen in the previous decade. Today, traders also focused on the Initial Jobless Claims report, which showed that 217,000 Americans filed for unemployment benefits in a week. The job market remains in a decent shape but traders are focused on the potential problems in the debt market. Treasury has to borrow money to fund the budget deficit and refinance maturing debt, and it looks that investors want higher yields in the current environment.

SP500 did not manage to settle above the resistance at 4380 – 4400 and has a good chance to develop downside momentum. Traders may use the disappointing results of the 30-year bond auctions as an excuse to take profits after the strong rally.

NASDAQ

NASDAQ is also losing ground as traders focus on the developments in the debt markets. The pullback is led by Tesla, which is down by 6% afeter HSBC initiated coverage with a $146 price target.

In case NASDAQ settles below the 15,200 level, it will head towards the psychologically important 15,000 level.

Dow Jones

Dow Jones is losing ground amid a broad pullback in the equity markets. Disney, which is up by 7%, is the only notable gainer in the Dow Jones index today. The stock moved higher as the company’s quarterly earnings exceeded analyst expectations.

In case Dow Jones settles below the 34,000 level, it will head towards the 50 MA at 33,700.

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