NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Retreats As Micron Dives 12.5%

The better-than-expected Manufacturing PMI and Services PMI provided support to Composite PMI, which increased from 51.5 to 52.2. Numbers above 50 show expansion.

From a big picture point of view, PMI reports indicated that U.S. economy remained in good shape. Thus, there’s no need to provide additional support to the economy, so the Fed could focus on fighting inflation. The hawkish Fed policy outlook served as a bearish catalyst for SP500 in today’s trading session.

The strong sell-off in the South Korean market raised worries about valuation of high-flying tech stocks. As a result, traders rushed to take profits off the table.

Oil prices moved lower as U.S. and Iran continued negotiations. President Trump said that Iran would use unfrozen funds to buy U.S. food and medical supplies. The traffic through the Strait of Hormuz is rising, which is bearish for oil markets. Falling oil prices did not provide support to SP500 as traders focused on the situation in the tech sector.

Tech stocks were among the biggest losers in today’s trading session. Basic materials stocks have also found themselves under strong pressure as traders reacted to the sell-off in precious metals markets.

Consumer defensive stocks gained ground amid rising demand for safe-haven assets. Real estate and utilities stocks have also moved higher as Treasury yields pulled back.