NASDAQ Index, SP500, Dow Jones Forecasts – Stocks Dive As Treasury Yields Test Yearly Highs
It should be noted that the bond market sell-off was global. Bonds in the UK, Japan, France, Germany, Italy and other developed countries found themselves under strong pressure.
WTI oil climbed above the $105.00 level as traders worried that U.S. may restart the military operaton against Iran. The Strait of Hormuz remains de-facto blocked, and U.S. – Iran negotiations have stalled. Trump – Xi summit concluded without any progress on Iran.
Today, traders had a chance to take a look at the Industrial Production report for April. The report indicated that Industrial Production increased by +0.7% month-over-month, compared to analyst forecast of +0.3%. The better-than-expected report did not provide support to SP500 as traders focused on stronger catalysts.
Energy stocks gained ground as traders focused on rising natural gas and oil markets. Other sectors moved lower in today’s trading session. Basic materials stocks suffered a sell-off as traders reacted to the strong pullback in precious metals markets. Utilities have found themselves under pressure due to rising Treasury yields.
Currently, SP500 is trying to settle below the support level at 7425 – 7435. In case this attempt is successful, SP500 will head towards the 50 MA at 7396. A move below the 50 MA will open the way to the test of the next support level, which is located in the 7350 – 7360 range.