SP500 is under strong pressure as traders focus on Trump tariffs. The tariffs were much higher than traders expected. The market worries that tariffs will hurt multiple U.S. companies and push the economy into recession. The pullback is broad, and most market sectors are moving lower in today’s trading session. Interestingly, consumer defensive stocks managed to gain some ground as traders searched for safe-haven assets. Utilities and healthcare stocks have also outperformed the broader market. The market’s move is so strong that some traders may be forced to liquidate their positions.
Currently, SP500 is trying to settle below the support at 5390 – 5400. In case this attempt is successful, SP500 will move towards the next support level, which is located in the 5320 – 5330 range. RSI is close to the oversold territory, but there is enough room to gain additional downside momentum in the near term.
NASDAQ tests support at 18,500 – 18,550 as traders sell tech stocks after tariff announcement. Apple, which is down by 9.9%, is among the worst performers in the NASDAQ index today. Traders sell Apple shares as tariffs will boost the price of Apple’s products and hurt the company’s profits.
If NASDAQ settles below the 18,500 level, it will head towards the support level at 18,000 – 18,050.
Dow Jones tests new lows amid broad sell-off in the equity markets. Nike, which is down by as much as 14%, is the worst performer in the Dow Jones index today. Nike stock suffered a strong sell-off as huge tariffs on Vietnam will hurt the company’s business.
Dow Jones tests support at 40,600 – 40,700. If this test is successful, Dow Jones will move towards the next support level, which is located in the 40,000 – 40,100 range.
For a look at all of today’s economic events, check out our economic calendar.
Vladimir is an independent trader, with over 18 years of experience in the financial markets. His expertise spans a wide range of instruments like stocks, futures, forex, indices, and commodities, forecasting both long-term and short-term market movements.