NASDAQ Index, SP500, Dow Jones Forecasts – Major Indices Move Higher As Traders Bet On A Less Hawkish Fed

Key Insights

• SP500 settled above the 4200 level ahead of the Fed decision. 
• NASDAQ climbed above the 14,500 level as Advanced Micro Devices rallied after the earnings report. 
• Dow Jones continued its attempts to settle above the resistance at 33,000 – 33,100.

SP500

SP500 gains ground as traders prepare for the Fed decision, which will be released soon. Today, traders also focused on the economic reports. ADP Employment Change report showed that private businesses added 113,000 jobs in October. The report missed analyst estimates of 150,000. JOLTs Job Openings increased from 9.5 million to 9.55 million, compared to analyst consensus of 9.25 milllion. The final reading of S&P Global Manufacturing PMI indicated that Manufacturing PMI increased from 49.8 in September to 50 in October, in line with the analyst consensus. Treasury yields are moving lower, so traders bet that Powell will not be hawkish.

Currently, SP500 is trying to settle above the resistance at 4200 – 4215. In case this attempt is successful, SP500 will head towards the next resistance level, which is located in the 4260 – 4280 range.

NASDAQ

NASDAQ moved higher as traders focused on the pullback in Treasury yields. Today’s move was driven by the strong performance of Advanced Micro Devices, which was up by 8% after the release of the earnings report.

If NASDAQ manages to settle above the resistance at 14,560 – 14,680, it will head towards the next resistance level at 15,200 – 15,300.

Dow Jones

Dow Jones gains some ground as traders wait for the Fed decision. The number of gainers is almost equal to the number of losers in the Dow Jones index today, so traders stay cautious ahead of the most important event of the week.

If Dow Jones stays above the 33,100 level, it will head towards the next resistance, which is located in the 34,000 – 34,150 range.

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