NASDAQ Index, SP500, Dow Jones Analysis – Major Indices Gain Ground As Chip Stocks Rally
- SP500 continues its attempts to settle above the important 4000 level.
- NASDAQ moved above 12,750 amid strong demand for tech stocks.
- Dow Jones settled above the 20 EMA and tested the 32,600 level.
SP500 climbed above the 4000 level amid rising risk appetite. Micron and Intel, which were up by 7%, were the biggest gainers in the SP500 today. Micron stock rallied after the release of the earnings report as traders bet that the worst was over for the company. Micron’s performance provided material support to other chip stocks.
Today, traders also focused on the Pending Home Sales data for February. The report exceeded analyst expectations and showed that the housing market had started to recover. However, it remains to be seen whether this recovery will be sustainable as it could have been driven by the fear of higher interest rates. The Fed policy outlook changed in recent weeks due to the banking crisis, so buyers may be cautious in the upcoming months as the Fed may start cutting rates to provide more support to the economy.
All market segments are moving higher, so SP500 has a good chance to settle above the important 4000 level. If this attempt is successful, SP500 will head towards the recent highs near 4045.
NASDAQ moved above the 12,750 level as chip stocks rallied. Treasury yields pulled back from session highs, providing additional support to the yield-sensitive tech stocks. In case NASDAQ settles above 12,750, it will move towards the 13,000 level.
Dow Jones climbed above the 20 EMA and is trying to settle above the 32,600 level. Today’s move is driven by the strong performance of Intel stock, although it should be noted that only three components of the Dow Jones index are losing ground in today’s trading session.
For a look at all of today’s economic events, check out our economic calendar.