NASDAQ Index, SP500, Dow Jones Forecasts – Dow Jones Moves Higher As McDonald’s Gains 2.1%

SP500

SP500 gains some ground ahead of the weekend. Today, traders focused on the Michigan Consumer Sentiment report, which indicated that Consumer Sentiment declined from 77.2 in April to 67.4 in May, compared to analyst consensus of 76. Importantly, year-ahead inflation expectations increased from 3.2% in April to 3.5% in May. Treasury yields moved higher as bond traders reacted to rising inflation expectations. Tech stocks were among the biggest gainers in SP500 today. Meanwhile, energy stocks found themselves under pressure as oil and natural gas markets moved lower.

SP500 settled above the previous resistance at 5180 – 5190 and is trying to settle above the 5240 level. In case this attempt is successful, SP500 will move towards the next resistance level at 5270 – 5280.

NASDAQ

NASDAQ is mostly flat as traders wait for additional catalysts. Mega cap stocks like Tesla, Apple, Amazon, and Alphabet have found themselves under pressure in today’s trading session as traders took some profits off the table ahead of the weekend.

NASDAQ settled below the strong resistance level at 18,300 – 18,400. If NASDAQ manages to climb above the 18,400 level, it will gain additional upside momentum.

Dow Jones

Dow Jones gains ground as most index components are moving higher. McDonald’s, which is up by 2.1%, is the biggest gainer in the Dow Jones index today. The stock gained upside momentum amid reports indicating that McDonald’s would launch $5 meal deal to attract customers.

Curently, Dow Jones is trying to settle above the 39,500 level. RSI is in the overbought territory, but there is some room to gain additional momentum. If Dow Jones stays above 39,500, it will head towards the nearest resistance, which is located in the 39,900 – 40,000 range.

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