NASDAQ Index, SP500, Dow Jones Forecasts – Major Indices Rally After Strong Retail Sales Data

Key Insights

• The SP500 surges in response to bullish Retail Sales report.
• NASDAQ ascends past 15,500, lifted by a buoyant debut from Arm Holdings, heralding tech-sector optimism.
• Dow Jones climbs towards 35,000, with Visa being the only loser in the index. 

SP500

SP500 gains ground as traders react to Retail Sales and PPI reports. Producer prices increased by 0.7% month-over-month in August, compared to analyst consensus of +0.4%. Core PPI grew by 0.2%, in line with analyst expectations. Retail Sales increased by 0.6%, compared to analyst consensus of +0.2%. Treasury yields moved higher, which was not surprising after the higher-than-expected PPI data. However, rising Treasury yields did not put any pressure on SP500 as traders focused on the strength of the economy.

SP500 settled above the 4500 level and continues to move higher. In case SP500 moves above the recent highs at 4540, it will head towards the significant resistance in the 4575 – 4600 range.

NASDAQ

NASDAQ moved above the 15,500 level amid growing appetite for risk. The strong debut of the Arm Holdings stock boosted market sentiment in the tech sector.

In case NASDAQ climbs above the 15,600 level, it will head towards the resistance, which is located in the 15,900 – 16,000 range. RSI remains in the moderate territory, so there is enough room to gain upside momentum in case the right catalysts emerge.

Dow Jones

Dow Jones climbed towards the 35,000 level amid a broad rally in the equity markets. Visa, which was down by more than 2% in today’s trading session, was the only loser in the Dow Jones index today.

From the technical point of view, Dow Jones needs to settle above 35,100 to have a chance to gain additional upside momentum. It should be noted that RSI is close to the overbought territory, so the risks of a pullback are increasing.

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