The SP500 fell due to a higher-than-expected Producer Prices report, which rose by 0.3% in July compared to the analyst consensus of +0.2%. Major indices received support from the Michigan Consumer Sentiment survey, and traders focused on the PPI figures. Bond traders bet on a more hawkish Fed, driving Treasury yields higher.

SP500 declined as traders After a robust surge in the first half of the year, the SP500 has faltered and is now heading towards support levels between 4430 and 4450. In response to the higher-than-expected Producer Prices report, a move below 4430 implies probable bearish momentum, and it will move towards support at 4335–4350. According to the study, PPI rose by 0.3% month over month in July, as opposed to the analyst consensus of +0.2%. Additionally, the Core PPI rose by 0.3%. Major indices received some support from the better-than-expected Michigan Consumer Sentiment survey, while traders have mostly been paying attention to the PPI figures. After the release of PPI data, which was negative for stocks, bond traders bet on a more hawkish Fed, driving Treasury yields higher.

NASDAQ is under pressure from traders offloading high-flying tech equities like Advanced Micro Devices and NVIDIA. Technically, NASDAQ is edging closer to the next level of support after settling below previous support levels. Support is in the 15,200–15,300 range, and the next support is in the 14,560–14,680 range.

The majority of index constituents climbed up today, boosting Dow Jones, with Disney being the lone significant exception. The index is still trapped between support at 35,000 and resistance at 35,550, and when it breaks out of this zone, it could gain significant momentum.
As traders liquidated AI-related stocks, the SP500 sought to settle below 4450, the NASDAQ tested new lows, and the Dow Jones remained range-bound.

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