Nasdaq, SP500, Dow: Fed Rates, AI Costs & Earnings Impact Alert

Key Insights

• Fed maintains high interest rates, sparking market selloff; Goldman Sachs delays rate cut forecast to May.
• Microsoft and Alphabet’s AI investment warnings dampen tech sector; major earnings reports anticipated.
• Upcoming labor data and tech giant earnings could sway market trends, impacting Nasdaq, S&P 500, and Dow Jones indices.

Fed’s Rate Stance and Tech Warnings Fuel Selloff; Eyes on Major Earnings

The Federal Reserve’s decision to maintain interest rates at multi-decade highs led to a significant market selloff, as Chair Jerome Powell dismissed early rate cut expectations.

Powell’s caution against a March reduction, despite signs of easing inflation, prompted Goldman Sachs to adjust its rate cut forecast from March to May, anticipating a total of five reductions through the year.

This shift impacted investor sentiment, further strained by warnings from Microsoft and Alphabet about rising costs related to artificial intelligence investments.

Upcoming earnings reports from major tech companies like Amazon, Apple, and Meta, alongside labor market data, could influence future market movements, affecting indices such as the Nasdaq, S&P 500, and Dow Jones. Qualcomm’s earnings beat was overshadowed by concerns over its market share in China.

SPX SP500 Price Forecast

The S&P 500 Index‘s pivot point, stationed at $4848.38, aligns with the 38.2% Fibonacci retracement level, delineating a crucial juncture. Resistance levels are plotted progressively higher at $4880.38, $4929.72, and $4967.05, each representing a potential barrier to upward momentum.

Conversely, support begins at $4823.05, corresponding to the 50% Fibonacci retracement, with further cushions at $4797.72 (61.8% Fibonacci level) and $4763.05, mapping the battleground for bears and bulls.

The 50-day Exponential Moving Average (EMA) at $4801.62 and the 200-day EMA at $4592.84 underline a broader market sentiment that leans towards caution. This technical landscape suggests a bearish inclination below the pivot of $4848.38, marking a decisive threshold for the index’s trajectory.

Dow Price Forecast

On this day’s 4-hour chart, the Dow Jones Industrial Average’s pivot point is established at $38,136.95, serving as the day’s financial compass. Above this pivotal line, immediate resistance is found at $38,326.30, with further barriers at $38,519.62 and $38,704.26, outlining potential hurdles for upward movement.

Conversely, immediate support lies at $38,029.10, followed by $37,900.42 and $37,792.56, which could provide relief during pullbacks. The 50-day Exponential Moving Average (EMA) at $38,093.72 and the 200-day EMA at $37,444.32 offer a backdrop of moderate bullish sentiment over the medium to long term.

Notably, an upward channel breakout near the $38,500 area hints at selling pressure, yet significant support at $38,136.95 underpins the index.

NASDAQ Price Forecast

The NASDAQ‘s pivot point at $15169.72, aligning with the 50% Fibonacci retracement level. Above this, the index faces resistance at $15273.82, $15412.62, and $15632.38, each threshold setting the stage for further gains.

Conversely, support levels are delineated at $15057.1 (coinciding with the 61.8% Fibonacci level), $14886.34, and $14707.06, offering potential floors for price dips.

With the 50-day Exponential Moving Average (EMA) at $15107.87 and the 200-day EMA at $14328.96, the technical posture leans towards optimism. This setup, highlighted by the pivotal and Fibonacci levels, signals a bullish outlook as long as the index stays above the critical support of $15057.1.

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