NASDAQ Index, SP500, Dow Jones Analysis – NASDAQ Tests New Highs As NVIDIA Soars 25%

Vladimir Zernov
Updated: May 29, 2023, 05:06 GMT+00:00

SP500 is also moving higher as traders hope that the debt ceiling deal will be announced in the upcoming days.


In this article:

Key Insights

  • SP500 gained ground as traders bet that Republicans and Democrats would reach consensus on the debt ceiling deal. 
  • NASDAQ rallied as NVIDIA gained 25% after the strong earnings report. 
  • Dow Jones pulled back as Intel stock declined by 6%. 


SP500 250523 Daily Chart

SP500 moved higher amid reports that Biden and McCarthy moved closer to a debt ceiling deal. While stock traders are optimistic, bond traders have their doubts as the yield of 2-year Treasuries is testing the 4.50% level. The yield of 10-year Treasuries has also moved to multi-month highs at 3.80%. Today, traders were also focused on the economic data. GDP report exceeded analyst expectations, while Initial Jobless Claims increased from 225,000 to 229,000. Pending Home Sales remained unchanged in April. These reports had limited impact on market dynamics as traders remained focused on debt ceiling negotiations.

In case SP500 manages to settle above the 4150 level, it will head towards the resistance at 4175. A move above 4175 will push SP500 towards the next resistance at 4200.

R1:4150 – R2:4175 – R3:4200

S1:4115 – S2:4090 – S3:4060


NASDAQ 250523 Daily Chart

NASDAQ tested new highs as NVIDIA rallied 25% after the earnings report. Traders bet that AI boom will push NVIDIA’s valuation above the $1 trillion level.

In case NASDAQ manages to settle above the resistance at 13,900, it will head towards the next resistance level at 14,100. A move above 14,100 will open the way to the test of the resistance at 14,300.

Dow Jones

Dow Jones
Dow Jones 250523 Daily Chart

Dow Jones moved lower as Intel stock declined by 6%. Traders worry that Intel will lose competition to NVIDIA. From the big picture point of view, Intel stock did not benefit from the AI boom as the stock is up by just 3% since the beginning of the year.

If Dow Jones settles below the support at 32,600, it will move towards the next support level at 32,300. A move below 32,300 will push Dow Jones towards the support at 32,000.

R1:32,800 – R2:33,000 – R3:33,175

S1:32,600 – S2:32,300 – S3:32,000

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

About the Author

Vladimir is an independent trader and analyst with over 10 years of experience in the financial markets. He is a specialist in stocks, futures, Forex, indices, and commodities areas using long-term positional trading and swing trading.

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