NASDAQ Index, SP500, Dow Jones Forecasts – Stocks Retreat As Traders Focus On China Tariffs

SP500

SP500 is losing ground as the U.S. decided to proceed with 104% tariffs on China. The tariffs will be imposed on Wednesday. It remains to be seen whether China retaliates against new tariffs. At the time of writing, China did not reveal its views on recent developments in the trade war. Previously, China promised to “fight to the end”. Offshore Chinese yuan was under significant pressure against U.S. dollar. As the yuan is partially controlled by the Chinese central bank, its weakness may indicate that China prepares for a lengthy trade war. In this scenario, a weak local currency will provide support to China’s economy. Not surprisingly, oil moved lower as traders reacted to tariff news. As a result, energy stocks were among the worst performers in the SP500 index today. Basic materials stocks have also found themselves under significant pressure amid recession worries.

Currently, SP500 is trying to settle back below the support at 5020 – 5030. In case this attempt is successful, SP500 will move towards the next support level, which is located in the 4860 – 4870 range.

NASDAQ

NASDAQ retreats as traders react to tariff news. Traders rush to sell stocks with significant exposure to China. Apple, which is down by 2.5%, is among the biggest losers in the NASDAQ index today.

NASDAQ declined below the 17,500 level and is trying to settle below the support at 17,300 – 17,350. If NASDAQ settles below 17,300, it will head towards the next support at 16,950 – 17,000.

Dow Jones

Dow Jones retreats amid broad pullback in the equity markets. Nike, which is down by 3.2%, is the worst performer in the Dow Jones index today.

If Dow Jones settles below the support at 37,900 – 38,000, it will move towards the next support level at 37,200 – 37,300.

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