S&P 500 And Nasdaq 100: Stocks Pulls Back As Traders Focus On Inflation And Job Market Data

Core Inflation Rate Increased To 3.3% In September

SP500 pulled back in volatile trading as traders reacted to U.S. inflation reports and job market data.

Inflation Rate decreased from 2.5% in August to 2.4% in September, compared to analyst forecast of 2.3%.

Core Inflation Rate increased from 3.2% in August to 3.3% in September, while analysts believed that it would remain unchanged at 3.2%.

The reports indicate that Core Inflation Rate has started to move higher. The Fed has recently cut the federal funds rate by 50 bps, so traders will evaluate whether inflation data changes Fed policy outlook.

Today, traders also focused on the Initial Jobless Claims report. The report showed that 258,000 Americans filed for unemployment benefits in a week, compared to analyst forecast of 230,000.

The surprising increase in Initial Jobless Claims shows that the job market may have found itself under some pressure due to the slowdown of the economy. However, Initial Jobless Claims may get back to previous levels in the next weeks, so it’s to early to say that the economy is slowing down.

SP500 Technical Analysis

From the technical point of view, SP500 is trying to settle above the 5800 level. In case this attempt is successful, SP500 will head towards new highs near the 5850 level. On the support side, the nearest support level for SP500 is located in the 5735 – 5750 range. A move below the 5735 level will open the way to the test of the next support at 5660 – 5680.

Nasdaq 100 Technical Analysis

Nasdaq 100 moved away from session lows and is trying to climb back above the 20,200 level. In case this attempt is successful, Nasdaq 100 will move towards the recent highs at 20,300. A move above this level will push Nasdaq 100 towards the nearest resistance level, which is located in the 20,700 – 20,800 range. On the support side, Nasdaq 100 needs to settle below the 20,000 level to gain downside momentum in the near term. In this scenario, Nasdaq 100 will head towards the next support at 19,500 – 19,600.

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