NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Moves Lower As NVIDIA Dives 6%

SP500

SP500 pulls back ahead of Fed decision. The pullback is led by tech stocks as traders are worried about rising competition from Chinese AI solutions. According to a recent Bloomberg report, Trump administration officials discuss additional restrictions on NVIDIA’s chip sales in China. The report indicated that the U.S. may ban the sales of the H20 chip, which was specifically designed for the Chinese market. NVIDIA shares are down by 6% as traders focus on potential restrictions. Traders also focus on the upcoming Fed decision and prepare for Powell’s comments. Analysts expect that Fed will keep the interest rate unchanged at 4.5%, but Powell’s commentary during the press conference may have a major impact on the market.

In case SP500 settles below the 6050 level, it will move towards the nearest support level, which is located in the 6000 – 6010 range.

NASDAQ

NASDAQ is losing ground as traders sell tech stocks. NVIDIA is the worst performer in the NASDAQ index today. Starbucks, which was up by 8.2%, was the biggest gainer in the index. The stock rallied as traders reacted to the better-than-expected earnings report.

From the technical point of view, NASDAQ settled in a range between the support at 21,150 – 21,200 and the resistance at 21,550 – 21,600. If NASDAQ declines below the 21,150 level, it will move towards the support level at 20,550 – 20,600.

Dow Jones

Dow Jones  did not manage to settle above the resistance at 44,900 – 45,000 ahead of the Fed decision. Traders decided to take some profits off the table ahead of the key event of the week.

RSI is in the moderate territory, so there is plenty of room to gain momentum and move above the 45,000 level in case the Fed is more dovish than expected.

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