NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Retreats As Meta Dives 8%

Oil prices rallied as traders reacted to recent developments in the Middle East. WTI oil climbed above the $94.00 level, while Brent oil rallied towards $108.00. The rally will continue in case of an additional escalation in the Middle East, which will be bearish for stocks.

Treasury yields moved higher as bond traders bet that Fed may be forced to raise rates to fight inflation, which will be triggered by high energy prices. The yield of 2-year Treasuries climbed towards the 4.00% level, putting additional pressure on major indices.

Today, traders had a chance to take a look at the Initial Jobless Claims report. The report showed that 210,000 Americans filed for unemployment benefits in a week, in line with analyst estimates. The report did not have a major impact on market dynamics as traders focused on stronger catalysts.

Energy stocks gained ground as traders focused on the strong rally in the oil markets. Rising natural gas markets provided additional support to the energy sector.

Tech stocks found themselves under strong pressure as investors’ appetite for risk declined.

Currently, SP500 is trying to settle below the support at 6510 – 6520. In case this attempt is successful, SP500 will move towards the next support level, which is located in the 6440 – 6450 range. RSI remains in the moderate territory, so there is plenty of room to gain momentum in the near term.