Dow Jones, the S&P 500, and Nasdaq price forecast after a second straight weekly loss
- For the week, the Dow Jones weakened -1.90%, the S&P 500 -1.58%, and the Nasdaq -1.76%
- The risk of an imminent Russian invasion remains very high
- The upside potential remains limited for the week ahead
Wall Street’s main indexes noted a second straight weekly loss as the uncertainty of potential outcomes between Ukraine and Russia continues to worry investors.
U.S. President Joe Biden said that the risk of an imminent Russian invasion remains very high, and there is no evidence that Russia is reducing military activity near Ukraine’s borders.
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The U.S. stock market could fall even more if the situation worsens as investors look for safer places to invest their money. U.S. Secretary of State Antony Blinken will meet Russian Foreign Minister Sergey Lavrov next week, and investors will continue to watch this situation very carefully.
Speculation about the Federal Reserve’s next move also weighed on financial markets after Fed Bank President John Williams said that it would be appropriate to hike interest rates in March. Christian Stocker, the lead equity strategist at UniCredit Bank, said:
The stock market will continue to be quite volatile until these important geopolitical uncertainties, and monetary policy questions are clarified. The worry is whether the pivot away from the pandemic-era stimulus will squeeze economic growth and inject more turbulence across asset classes.
The U.S. central bank is likely to meet market expectations for a 25-basis-point rate hike in March, but investors’ main question is how the U.S. economy will handle rate increases. Investors’ focus will also remain on the quarterly earnings reports because many companies have yet to publish their reports.
Next week, Home Depot, eBay, Macy’s, Toll Brothers, Mosaic, Lowe’s, Moderna, Norwegian Cruise Line Holdings, Lemonade, Alibaba, Beyond Meat, and Intuit are among the companies scheduled to report quarterly results.
S&P 500 down -1.58% on a weekly basis
For the week, S&P 500 (SPX ) weakened by -1.58% amid increasing concerns around geopolitical turmoils.
This is the S&P 500’s second consecutive week in the red, and if the price falls below 4,200 points, the next target could be 4,000 points.
The upside potential remains limited for the week ahead; still, if the price jumps above 4,400 points, the next target could be 4,450 points.
DJIA down -1.90% on a weekly basis
The Dow Jones Industrial Average (DJIA) weakened -1.90% for the week and closed at 34,079 points.
The current support level stands at 33,500 points, and if the price falls below this level, the next target could be 33,000 points.
Nasdaq Composite down -1.76% on a weekly basis
Nasdaq Composite (COMP) has lost -1.76% on a weekly basis and closed the week at 13,548 points.
The current support level stands around 13,300 points, and if the price falls below this level, it would be a “sell” signal, and we have the open way to 13,000 points.
The Dow Jones, the S&P 500, and the Nasdaq weakened on a weekly basis amid increasing concerns around geopolitical turmoils. U.S. President Joe Biden said that the risk of an imminent Russian invasion remains very high, and the upside potential remains limited for the week ahead.
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