NASDAQ Index, SP500, Dow Jones Forecasts – Stocks Pull Back As Oil Soars

WTI oil rallied above the $105.00 level. Brent oil made an attempt to settle above $115.00 as traders evaluated the risks of a new round of war in the Middle East.

At the time of writing, UAE has not retaliated against Iran. President Trump did not comment on the issue. The key question is whether U.S. will restart the military operation against Iran due to attacks against UAE.

Gulf states have condemned Iran’s actions but did not respond. It should be noted that oil prices have started to move away from session highs as Iran’s actions did not get an immediate response from U.S. or UAE.

Today, traders had a chance to take a look at the Factory Orders report. The report showed that Factory Orders grew by +1.5% month-over-month in March, compared to analyst forecast of +0.5%. The better-than-expected report did not have a material impact on market dynamics as traders remained focused on the situation in the Middle East.

Energy stocks gained ground, supported by rising oil and natural gas prices. Basic materials stocks were among the worst performers today as traders focused on the strong pullback in precious metals markets.

SP500 managed to rebound from session lows and moved towards the resistance level at 7215 – 7225. If SP500 climbs above the 7225 level, it will head towards the resistance level at 7270 – 7280.