28 Apr 2016
US stocks end sharply lower after weak GDP data
US stocks ended sharply lower on Thursday after data showed US GDP growth marked its slowest pace in two years and jobless claims rose more than expected.
The Dow Jones Industrial Average lost 210.79 points, or 1.17%, to 17,830.76, recording the biggest one-day drop since February 11. The S&P 500 fell 19.34 points, or 0.92%, to 2,075.81 while the Nasdaq dropped 57.85 points, or 1.19%, to 4,805.29.
On the data front, US GDP slowed to 0.5% in the first quarter according to the advance estimate, missing expectations of 0.7% growth. Separated data showed initial jobless claims rose more than expected to 257K in the week ended Apr 22.
DJIA technical view
“As for the technical picture, the DJIA daily chart shows that the index fell below its 20 SMA for the first time in over two weeks, whilst the technical indicators have turned sharply lower, but are not yet breaking into negative territory,” said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the technical outlook is bearish, given that the technical indicators maintain strong bearish slopes well below their mid-lines, while the index is now below its 20 and 100 SMAs.”
Support levels: 17,775 17,730 17,651. Resistance levels: 17,904 17,985 18,046.
The Dow Jones Industrial Average lost 210.79 points, or 1.17%, to 17,830.76, recording the biggest one-day drop since February 11. The S&P 500 fell 19.34 points, or 0.92%, to 2,075.81 while the Nasdaq dropped 57.85 points, or 1.19%, to 4,805.29.
On the data front, US GDP slowed to 0.5% in the first quarter according to the advance estimate, missing expectations of 0.7% growth. Separated data showed initial jobless claims rose more than expected to 257K in the week ended Apr 22.
DJIA technical view
“As for the technical picture, the DJIA daily chart shows that the index fell below its 20 SMA for the first time in over two weeks, whilst the technical indicators have turned sharply lower, but are not yet breaking into negative territory,” said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the technical outlook is bearish, given that the technical indicators maintain strong bearish slopes well below their mid-lines, while the index is now below its 20 and 100 SMAs.”
Support levels: 17,775 17,730 17,651. Resistance levels: 17,904 17,985 18,046.