NASDAQ Index, SP500, Dow Jones Analysis – Stocks Mixed As Powell Stays Hawkish

Key Insights

• SP500 remains stuck near the 50 MA at 4385.
• NASDAQ gained some ground amid strong demand for tech stocks. 
• Dow Jones is down by 0.3% due to the pullback in healthcare stocks. 

SP500

SP500 is mostly flat in today’s trading session as traders wait for additional catalysts. The Trade Balance and Wholesale Inventories data did not have a material impact on market dynamics. Today, Fed Chair Jerome Powell reiterated his views on the potential rate hike, which could be announced at the next meeting in July. Powell was rather hawkish but did not reveal anything new. Energy stocks are among the best performers in the SP500 today as traders focus on the strong rebound in the oil markets, which was triggered by the bullish EIA report.

From the technical point of view, SP500 continues its attempts to settle above the 50 MA at 4385. A move above this level will push SP500 towards the resistance in the 4430 – 4450 range.

NASDAQ

NASDAQ gains some ground as demand for tech stocks remains strong. Interestingly, the news about potential restrictions on AI chip exports to China did not put material pressure on semiconductor stocks, which indicates that buyers’ interest in AI-related companies remains extremely strong.

NASDAQ index is also trying to settle above the 50 MA at 14,970. RSI is in the moderate territory, and there is plenty of room to gain additional upside momentum if NASDAQ settles above the 14,970 level.

Dow Jones

Dow Jones remains stuck in the 33,785 – 33,875 support area as traders wait for additional catalysts. The weak performance of healthcare stocks put some pressure on the Dow Jones index today.

In case Dow Jones stays above the 33,785 level, it will have a good chance to test the 50 MA at 33,960. A move above the 50 MA will push Dow Jones towards the 34,200 level.

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