The NASDAQ 100 Index faced a notable retreat today, driven primarily by a staggering 32.3% drop in Super Micro Computer shares. This decline has raised concerns about the tech sector's stability, contributing to broader market apprehensions. Meanwhile, the S&P 500 is feeling the pressure as investor sentiment shifts in response to recent economic data. The Dow Jones is closely monitoring its support levels as it navigates through this volatile environment. As traders digest these developments, the outlook for the indices remains cautious amid growing uncertainties.
1. The S&P 500 is declining as traders react to the lackluster GDP Growth Rate report.
2. The NASDAQ is experiencing a downturn, reflecting a pullback in the tech sector.
3. The Dow Jones is testing support levels between 42,100 and 42,200.
The S&P 500 is declining as traders respond to a series of economic reports. The ADP Employment Change report revealed that private businesses added 233,000 jobs in October, significantly above the analyst consensus of 115,000. Meanwhile, the third-quarter GDP Growth Rate came in at 2.8%, lower than the expected 3%. Today, traders are also focusing on the Pending Home Sales report for September, which showed a strong increase of 7.4%, outpacing the forecast of 1.1%, and a year-over-year rise of 2.6%. Tech stocks were among the biggest losers in the S&P 500, with healthcare and consumer defensive stocks also facing pressure.
The nearest support level for the S&P 500 is between 5800 and 5810. If it falls below 5800, the index may move toward the next support level at 5735 to 5750.
The NASDAQ is experiencing a decline, largely due to Super Micro Computer's 32.2% drop following Ernst & Young's resignation as the company's auditor. Advanced Micro Devices is also struggling, down 10.1%, making it one of the biggest losers on the index today. Although its earnings report met expectations, disappointing guidance led to strong selling pressure.
Should the NASDAQ settle below the 50-day moving average at 20,372, it may move toward the nearest support level, which lies in the 20,000 to 20,100 range.
The Dow Jones is trending downward as tech and industrial stocks pull back. IBM is the biggest loser on the index today, down 2.7%, continuing its decline after a disappointing earnings report released on October 23.
At present, the Dow Jones is testing support levels between 42,100 and 42,200. If it manages to settle below this range, it may head toward the next support level at 41,400 to 41,500.
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