Nasdaq 100, Dow Jones, S&P 500 News: Tech Stocks Boost Market Ahead of Key Fed Decision

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Updated: Mar 18, 2024, 16:05 UTC

Key Points:

U.S. stock market sees gains, especially in tech sector, ahead of Fed meeting.
Tech giants like Alphabet and Tesla lead market gains with significant stock increases.
Current market conditions suggest a short-term bullish outlook despite inflation concerns.

Nasdaq-100 Index, S&P 500 Index, Dow Jones

Positive Movements on Monday

The US stock market experienced an uplift on Monday, driven by significant gains in major technology stocks. This rally occurred ahead of the much-anticipated meeting of the US Federal Reserve, despite a rise in bond yields to a three-week high. The expectation that the Federal Reserve will maintain interest rates steady, following February’s consumer price data, added to the positive sentiment.

At 15:30 GMT, the Dow Jones is trading 38879.12, up 164.35 or +0.42%, the S&P 500 Index is at 5163.84, up 46.75 or 0.91% and the tech-weighted Nasdaq-100 Index is trading 16171.23, up 198.06 or +1.24%.

Tech Giants Lead the Charge

Alphabet shares surged 6.4%, fueled by reports of Apple’s talks to integrate Google’s Gemini AI into the iPhone. Tesla also saw a 2.8% increase after announcing price hikes for its Model Y EVs in Europe. Notably, Nvidia’s shares rose by 3.8% as the company commenced its annual developer conference, with analysts raising price targets in anticipation of new AI developments.

Market Shifts and Investor Anticipation

The positive movements in tech stocks come after a period of tech-led losses for both the S&P 500 and Nasdaq Composite. Investors are now closely watching the Federal Reserve’s policy meeting, with a 99% probability, as per the CME FedWatch Tool, of keeping interest rates unchanged. The market is also adjusting to recent inflation readings, which could influence the Federal Reserve’s stance on future rate hikes.

Treasury Yields and Economic Data

The yield on the 10-year Treasury note remained steady at 4.31%. Economic data, including the consumer price index and producer price index reports, influenced market expectations. The National Association of Home Builders reported increased builder confidence, adding to the complex economic backdrop.

Short-Term Market Forecast

Given the current market conditions, with tech stocks driving a market rally and anticipation of the Federal Reserve’s meeting, a cautiously bullish outlook seems reasonable in the short term. However, ongoing inflation concerns and the Federal Reserve’s policy decisions will be crucial factors influencing market direction.

Technical Analysis

Daily E-mini Nasdaq-100 Index

E-mini Nasdaq-100 Index futures are rallying on Monday, leveraging the 50-day moving average at 17917.25 as a key support point.

The short-term trend is currently down, a direction confirmed on Friday when the index dropped below three previous low points. This trend could reverse to upward if the index surpasses the 18506.75 level.

In terms of broader support, the 50-day moving average at 17917.31 and the 200-day moving average at 16466.37 are significant. The former provides intermediate-term support, while the latter underpins the long-term upward movement.

The short-term outlook for the E-mini Nasdaq-100 Index suggests a period of fluctuating prices. If the index fails to sustain above the 50-day moving average, it may lead to a significant downward correction, emphasizing the importance of this average in market stability.

About the Author

James Hyerczykauthor

James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.