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

Key Insights

• SP500 gains ground as traders focus on the weak JOLTs Job Openings report. 
• NASDAQ sees a bullish uptick, gaining over 1.5% as traders find solace in a weaker dollar and falling Treasury yields, amplifying the appetite for tech stocks.
• Dow Jones advances modestly, led by a 3% rise in Verizon following an upgrade from Citigroup.

SP500

SP500 rallied as traders reacted to the weak JOLTs Job Openings report, which showed that Job Openings declined from 9.165 million (revised from 9.582 million) in June to 8.827 million in July. The revision of the June data served as an additional bullish catalyst for stocks as weaker job market may lead to a less hawkish Fed. CB Consumer Confidence report for August has also missed analyst expectations. At this point, the outlook for Fed policy is the key driver for major indices. Traders ignore recession worries and focus on falling Treasury yields, which is bullish for stocks.

From the technical point of view, SP500 settled above the 4450 level and is trying to climb above 4500. In case this attempt is successful, SP500 will head towards the resistance in the 4575 – 4600 range.

NASDAQ

NASDAQ gained more than 1.5% as traders focused on weaker dollar and falling Treasury yields. Tech stocks were among the biggest gainers today as the appetite for risk increased.

If NASDAQ settles above the 200 MA at 15,325, it will head towards the next resistance level, which is located in the 15,900 – 16,000 range.

Dow Jones

Dow Jones has also moved higher, although this move was not strong. Verizon, which was up by 3% after an upgrade from Citigroup, was the biggest gainer in the Dow Jones index today.

RSI is close to the overbought territory, but there is enough room to gain additional upside momentum. In case Dow Jones settles above the 34,800 level, it will head towards the resistance at 35,000 – 35,100.

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