NASDAQ Index, SP500, Dow Jones Forecasts – Stocks Retreat As Treasury Yields Test New Highs

SP500

SP500 is losing ground as traders focus on rising Treasury yields and geopolitical risks. The yield of 2-year Treasuries climbed above the 4.00% level, while the yield of 10-year Treasuries moved towards the 4.03% level. WTI oil rallied above the $77.00 level and Brent oil climbed above $81.00 as traders focused on the situation in the Middle East. Rising energy prices may boost inflation and force the Fed to be more hawkish, which will be bearish for stocks. Not surprisingly, energy sector is the only market segment that is moving higher in today’s trading session. The pullback is led by utilities stocks, which react to rising Treasury yields.

The nearest support level for SP500 is located in the 5660 – 5680 range. RSI is in the moderate territory, so there is plenty of room to gain additional downside momentum in the near term. A successful test of the support at 5660 – 5680 will push SP500 towards the next support level at 5550 – 5570.

NASDAQ

NASDAQ is moving lower as traders take profits in tech stocks. Big names like Tesla, Amazon, and Alphabet are among the biggest losers in the NASDAQ index today.

If NASDAQ settles below the 19,800 level, it will move towards the nearest support, which is located in the 19,500 – 19,600 range. A move below 19,500 will open the way to the test of the next support at 18,800 – 18,900.

Dow Jones

Dow Jones is under pressure amid broad pullback in the equity markets. Just two stocks in the Dow Jones index managed to gain some ground today.

Dow Jones has recently made an attempt to settle below the 41,800 level but lost momentum and rebounded above 41,900. If Dow Jones settles below 41,800, it will head towards the nearest support level at 41,300 – 41,400.

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