NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Drops 2.2% As Tesla Dives 7.1%

SP500

SP500 is under strong pressure as traders react to the Non Farm Payrolls report, which indicated that the economy added 142,000 jobs in August, compared to analyst consensus of 160,000. The previous report was revised from 114,000 to 89,000. Traders worry that the economy is slowing down and that Fed kept interest rates at high levels for too long. Unemployment Rate declined from 4.3% to 4.2%, in line with analyst expectations. Treasury yields moved lower as bond traders bet on dovish Fed, but this move did not provide any support to stocks. Today’s pullback was broad, and all market sectors have found themselves under pressure.

Currently, SP500 is trying to settle below the support at 5400 – 5420. In case this attempt is successful, it will head towards the next support level at 5285 – 5300.

NASDAQ

NASDAQ retreats as traders sell tech stocks amid growth worries. Tesla, which is down by 7.1%, is among the biggest losers in the NASDAQ index today.

NASDAQ has recently moved below the support at 18,500 – 18,600. If NASDAQ stays below the 18,500 level, it will head towards the next support, which is located in the 17,700 – 17,800 range. It should be noted that RSI is in the oversold territory, so the risks of a rebound are increasing.

Dow Jones

Dow Jones tests new lows amid broad pullback in the equity markets. Amazon is the biggest loser in the Dow Jones index today. Meanwhile, rising demand for defensive stocks provided support to McDonald‘s, Travelers Companies, and Unitedhealth Group shares.

In case Dow Jones manages to settle below the support at 40,500 – 40,600, it will head towards the next support level at 39,700 – 39.800. On the upside, Dow Jones needs to settle back above the 40,600 level to have a chance to gain upside momentum in the near term.

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