Dow Pulls Back Amid Geopolitical Risks and Big Tech Losses
U.S. equities traded lower during today’s session. Specifically, geopolitical uncertainty regarding Iran heavily weighed on market sentiment. In addition, broad losses across Big Tech stocks added further downward pressure. Consequently, major stock benchmarks extended their intraday pullbacks. Leading the decline, the tech-heavy Nasdaq Composite dropped 177.17 points (-0.67%) to 26,428.19. Meanwhile, the Dow Jones Industrial Average fell 183.12 points (-0.34%) to settle at 53,792.86.
Dow Jones Industrial Average
Dow Jones Industrial Average initially moved higher earlier in the trading session. However, price action sharply reversed to trade lower. Consequently, today’s bearish candle completely engulfs yesterday’s trading range. If this bearish move continues, the index will likely attempt to close the recent price gap lower. Furthermore, a deeper pullback could target the primary ascending orange trend line support. Conversely, holding above immediate support levels could help stabilize the index.
The Kraft Heinz Company (KHC)
Shares of The Kraft Heinz Company (KHC) successfully returned above the 200 EMA back in July. Subsequently, price action printed a new higher swing high near the $28.00 region. However, the stock recently turned lower and reached the broken 200 EMA near $24.63. Specifically, this level sits right above dynamic support from the 100 EMA at $24.41. If share prices can form a bottom and bounce here, traders could consider adding long positions. Conversely, a breakdown below this confluence area might trigger a further drop toward the lower ascending trend line.