Nasdaq 100, Dow Jones, S&P 500 News: Tech Stocks Boost Wall Street’s Recovery

Technology Stocks Propel S&P 500

The S&P 500 experienced a notable rise on Thursday, fueled by a surge in technology stocks. This upward trend marked a recovery from earlier dips in the week and was largely driven by significant gains in key tech companies.

At 16:30 GMT, the Dow Jones Industrial Average is trading 38520.87, up 59.36 or +0.15%. The S&P 500 Index is at 5199.49, up 38.85 or +0.75% and the Nasdaq Composite is trading 16398.48, up 228.12 or +1.41%.

Key Gainers in Tech Sector

Technology companies played a pivotal role in the S&P 500’s performance. Nvidia, a notable player, saw an over 3% increase in its stock value. Similarly, Broadcom and Super Micro Computer each reported around 4% gains. Other tech giants like Amazon and Alphabet also contributed to the rally, with advances of approximately 1.7%.

Mixed Weekly Performance

Despite Thursday’s gains, the broader market outlook remains mixed. The Dow and S&P 500 are projected to conclude the week with declines of 1.1% and 0.3% respectively. In contrast, the Nasdaq, with its tech-heavy composition, is set to end the week up by 0.6%.

March Inflation and Producer Price Index

March’s inflation data offered mixed signals. The producer price index (PPI) for March was lower than expected, rising by just 0.2% against a forecasted 0.3%. This brought some optimism following Wednesday’s downturn caused by an unexpected rise in consumer goods and services prices. Notably, wholesale prices have escalated by 2.1% on a yearly basis, the steepest increase since April 2023.

Market Reaction to Inflation Data

The market’s response to inflation indicators is complex. While some disinflation signs exist, experts like Jamie Cox of Harris Financial Group emphasize the challenge of reducing inflation to the Federal Reserve’s 2% target. This sentiment is echoed by New York Fed President John Williams, who sees no immediate need for policy changes.

Upcoming Earnings Reports

The focus also shifts to earnings reports. CarMax shares dropped significantly after underperforming in earnings, setting a cautious tone ahead of forthcoming reports from major banks like JPMorgan, Wells Fargo, and Citigroup.

Short-Term Market Forecast: Cautiously Bullish

Considering the tech sector’s resilience and mixed inflation data, the short-term market outlook appears cautiously bullish. However, upcoming earnings reports and continued vigilance on inflation will be crucial in shaping market sentiment.

Technical Analysis

E-mini S&P 500 Index futures are edging higher at the mid-session after another sucessful test of the intermediate trend indicator that has been guiding the market higher since early November.

The key indicator to watch into the close on Thursday is the 50-day moving average at 5172.97. Trader reaction to this trend indicator will determine the tone of the market.

While some will read a test of this level as a buying opportunity, others will see it as a potential trigger point for an acceleration to the downside.

Last week, the benchmark index crossed to the weakside of a long-term rising wedge, putting further pressure on the market.