NASDAQ, S&P 500, Dow Jones Analysis – Stocks Fall Amid Rate Hike Worries

S&P 500 240223 Daily Chart

S&P 500 is trying to settle below the 3950 level as traders react to the higher-than-expected PCE Price Index report. The report indicated that PCE Price Index increased from 5% in December to 5.4% in January, while Core PCE Price Index grew from 4.6% to 4.7%. Both reports exceeded analyst estimates.

The higher-than-expected New Home Sales have also highlighted inflationary pressure and pushed Treasury yields higher. Currently, the yield of 10-year Treasuries is trying to settle above the 3.95% level. In case this attempt is successful, the yield of 10-year Treasuries will move towards the psychologically important 4.00% level, which will be bearish for stocks.

Autodesk , which is down by 12% today, is the biggest loser in the S&P 500 today. The stock found itself under significant pressure as traders reacted to the company’s disappointing earnings report and guidance.


NASDAQ 240223 Daily Chart

NASDAQ is trying to settle below the 50 EMA at 11,950 as tech stocks retreat amid rising Treasury yields.

Traders have started to prepare for a more hawkish Fed, which put significant pressure on the yield-sensitive tech stocks.

If the yield of 10-year Treasuries moves above the important 4.00% level, NASDAQ will gain additional downside momentum.

Dow Jones

Dow Jones 240223 Daily Chart

Dow Jones tested yearly lows amid a broad sell-off in equity markets. Boeing  was down by more than 4% as the company halted deliveries of 787 jets.

JPMorgan Chase and Dow were the only stocks in the Dow Jones index that managed to gain some ground in today’s trading session, so today’s pullback was broad.

For a look at all of today’s economic events, check out our economic calendar.