Dow Jones and S&P500: Bulls Regain Control With Health Sector Leading Recovery

S&P 500 Futures Hold Near Recent Highs as Bulls Eye Resistance

The S&P 500 E-mini futures edged up by 0.12% to close at 5,982.50 on Monday, extending their winning streak to a sixth session. The mild advance came as bond yields cooled off intraday, offering some relief after a sharp rise triggered by Moody’s downgrade of the U.S. credit rating. Investors appeared to brush aside the downgrade, focusing instead on the resilience of equities and signs of improving market breadth.

Is the S&P 500 Setting Up for a Breakout?

Technically, the S&P 500 is hovering just below the key 6,000 level, now trading well above its 50-day moving average (currently near 5,590). The index has recovered sharply from April’s lows, reclaiming roughly 900 points in less than a month. This recent stretch includes a series of higher highs and higher lows—indicative of strengthening bullish momentum. Traders will be watching for a close above 6,000, which could trigger further upside fueled by short covering and momentum buying.

Nasdaq Futures Near Multi-Month Highs as Tech Outperforms

Nasdaq 100 E-mini futures rose 0.10% to settle at 21,527.00. While the gain was marginal, it marks a continuation of a powerful rally from late April, driven in part by strength in megacap tech names. The contract remains comfortably above its 50-day moving average (19,586), confirming bullish control.

Can the Nasdaq Sustain Its Climb Without a Pullback?

The Nasdaq’s recent surge has left it potentially overextended in the short term. The index is up more than 15% from its April trough, and candles over the last week suggest buying pressure is losing some steam. That said, the index remains in a healthy uptrend and has not yet shown signs of meaningful distribution. A consolidation near current levels would be considered constructive ahead of Nvidia’s earnings next week.

Dow Futures Rebound Supported by Health Care and Industrials

Dow Jones E-mini futures posted the largest gain among the major U.S. contracts, rising 0.35% to 42,885. Strength in UnitedHealth (+8.21%) provided a major boost, offsetting declines in heavyweights like Apple and Goldman Sachs. The Dow has now reclaimed its 50-day moving average (41,159) and is approaching prior resistance near 43,148.

Is the Dow Poised to Catch Up With the Broader Market?

The Dow has lagged the S&P and Nasdaq over the past month but is showing signs of catching up. Monday’s gain was underpinned by broad participation across defensive sectors like health care and consumer staples. A sustained move above 43,148 could clear the path toward retesting April highs.

More Information in our Economic Calendar.