NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Retreats Ahead Of Apple’s Report

SP500 gained some ground at the start of the trading session but lost momentum and pulled back. Traders continue to sell tech stocks ahead of Apple‘s earnings report, which will be released today. Traders are worried that AI investments will hurt cash flows of tech leaders, leading to massive re-pricing of their valuations.

This is not the first time the market is worried about the impact of AI. However, the negative impact of AI has already shown up in some key reports, including the ones from Alphabet and Intel. In this environment, any weakness from Apple will likely push the market lower.

Energy stocks are among the biggest losers as traders react to the sell-off in the oil markets. Tech stocks are under strong pressure amid AI-related fears. Consumer cyclical and consumer defensive stocks gained strong upside momentum as traders focused on lower oil prices and falling Treasury yields.

SP500 failed to settle above the resistance at 7615 – 7625 and is trying to settle below the 7600 level. In case this attempt is successful, SP500 will head towards the nearest support, which is located in the 7515 – 7525 range. A successful test of this level will open the way to the test of the next support at 7440 – 7450. RSI is in the moderate territory, so there is plenty of room to gain momentum in case the right catalysts emerge.