NASDAQ Index, SP500, Dow Jones Analysis – NASDAQ Tests New Highs As Demand For Tech Stocks Remains Strong

Key Insights

• SP500 is testing the resistance at the 4050 level.
• NASDAQ made an attempt to settle above the 13,000 level. 
• Dow Jones tested the 50 EMA at 32,865.

SP500

SP500 is trying to settle above the 4050 level as the market sentiment remains bullish despite the disappointing GDP report. The report indicated that GDP increased at a rate of 2.6% in the fourth quarter of 2022, compared to analyst consensus of 2.7%. The weaker-than-expected report boosts chances for a more dovish Fed at the next meeting. Initial Jobless Claims  increased from 191,000 to 198,000 but remained below the psychologically important 200,000 level.

There are no big moves in Treasury markets today as bond prices are stabilizing after the recent volatility. The yield of 2-year Treasuries settled near the 4.10% level as traders expect that Fed will be forced to cut rates this year to provide additional support to the economy.

Most market segments are moving higher, although financial stocks have found themselves under pressure. Traders remain worried about the health of the U.S. banking sector.

NASDAQ

NASDAQ tested the 13,000 level amid rising demand for tech stocks. Intel, AMD and other chip stocks continue to move higher as traders bet that AI-related demand will boost companies’ earnings.

From the technical point of view, NASDAQ managed to climb above the resistance at 12,750 and has a good chance to gain additional upside momentum in the upcoming trading sessions.

Dow Jones

Dow Jones tested the 50 EMA at 32,865 but failed to develop sufficient upside momentum and pulled back. RSI remains in the moderate territory, and there is plenty of room to gain momentum in case the right catalysts emerge. If Dow Jones manages to settle above the 50 EMA, it will head towards the next resistance level, which is located at 33,200.

For a look at all of today’s economic events, check out our economic calendar.