Nasdaq, S&P 500, Dow: US Indices Tumble as January CPI Surges; What’s Next?

Key Insights

• S&P 500, Nasdaq, Dow slide after January’s CPI exceeds forecasts, hinting at sustained Fed rates.
• Lyft, Airbnb volatility and Kraft Heinz’s demand woes reflect corporate challenges amid inflationary pressures.
• Market sentiment cautiously optimistic, with SPX, Dow, and Nasdaq forecasts suggesting potential for bullish momentum above pivot points.

Fundamental Outlook

The S&P 500, Nasdaq, and Dow experienced significant losses of 1.4%, 1.8%, and 1.4% respectively, reacting to the January consumer price data suggesting inflation remains above the Fed’s 2% target.

Market adjustments reflect reduced expectations for a March rate cut, with individual stocks like Lyft and Airbnb showing volatility due to specific corporate forecasts and operational outlooks, while Kraft Heinz confronts demand challenges after price increases.

This mixed corporate and economic landscape reflects ongoing adjustments to inflation and interest rate expectations, influencing the broader market trends across Nasdaq, S&P 500, and Dow.

SPX SP500 Price Forecast

The S&P 500 index shows resilience in the early trading hours of February 14, demonstrating a keen pivot at $4942.77. The immediate resistance levels are poised at $4997.47, $5043.60, and $5095.24, suggesting potential for upward momentum if these barriers are breached.

Conversely, support levels at $4919.17, $4877.34, and $4839.79 offer a foundation against pullbacks. The 50-day and 200-day Exponential Moving Averages, at $4891.63 and $4655.45 respectively, underline a bullish sentiment, reinforcing the index’s strength above the pivot point.

Given these dynamics, the S&P 500’s trajectory leans towards bullish, contingent on sustaining above the pivotal $4942.77 mark.

Dow Price Forecast

The Dow Jones Industrial Average (DJIA) is positioned near a pivot point of $38,317.42, suggesting a nuanced stance on market direction. Resistance levels are delineated at $38,490.51, $38,599.25, and $38,752.37, indicating potential barriers to upward movement.

Conversely, support levels are found at $38,202.03, with additional buffers at $38,035.60 and $37,902.45, offering floors to prevent deeper pullbacks. The proximity of the current price to the 50-day Exponential Moving Average (EMA) at $38,495.31, along with the 200-day EMA at $37,908.25, suggests a cautiously optimistic outlook.

The Dow’s trajectory appears bullish above the pivotal mark of $38,317.42, contingent on its capacity to breach or sustain above these critical levels.

NASDAQ Price Forecast

The NASDAQ Composite Index, as of February 14, hovers near a pivot point of $15,650.39, indicating potential market direction. Immediate resistance levels are identified at $15,743.19, $15,858.96, and $16,023.49, suggesting room for upward momentum if these thresholds are surpassed.

On the downside, support is established at $15,521.69, with further cushions at $15,368.94 and $15,208.46, which could mitigate potential declines. The 50-day and 200-day Exponential Moving Averages, at $15,427.19 and $14,556.20 respectively, bolster a bullish outlook, reinforcing the index’s strength above the pivot.

Consequently, the NASDAQ’s trajectory leans towards bullishness, contingent on remaining above the pivotal $15,650.39 level.

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