NASDAQ Index, SP500, Dow Jones Forecasts – Major Indices Rebound From Session Lows As Traders Buy The Dip

SP500

SP500 is losing ground as traders react to the better-than-expected GDP Growth Rate report. The report indicated that GDP Growth Rate was +3.8% in the second quarter, compared to analyst forecast of +3.3. The previous reading was revised from -0.5% to -0.6%. Treasuty yields moved higher as bond traders reduced bets on dovish Fed. It should be noted that Fed policy outlook is one of the key drivers for equity markets. The strong report served as a bearish catalyst for stocks as it reduced chances for a rate cut at the next Fed meeting. Today, traders also had a chance to take a look at the Durable Goods Orders report for August. The report showed that Durable Goods Orders increased by +2.9% month-over-month, compared to analyst consensus of -0.5%. Initial Jobless Claims report indicated that 218,000 Americans filed for unemployment benefits in a week, compared to analyst forecast of 235,000. From a big picture point of view, the reports showed that the U.S. economy remained in decent shape.

SP500 managed to rebound from session lows and is trying to settle back above the 6620 level. In case this attempt is successful, SP500 will move towards the 50 MA at 6648.

NASDAQ

NASDAQ tested new lows as traders continued to take profits in tech stocks. Strategy, which was down by 7.6%, was the biggest loser in the NASDAQ index today. The stock found itself under pressure as Bitcoin declined below the $110,000 level.

NASDAQ has also managed to rebound from session lows as traders used the pullback as an opportunity to increase their long positions at attractive levels. A move above the 50 MA at 24,479 will open the way to the test of the resistance at 24,750 – 24,800.

Dow Jones

Dow Jones is moving away from session lows as traders buy the dip. IBM, which is up by 4.5%, is the biggest gainer in the Dow Jones index today. The stock rallied as the company’s quantum systems outperformed tradtional computer methods in algorithmic trading on the European bond market.

If Dow Jones settles back above the 46,000 level, it will head towards the resistance at 46,100 – 46,200.

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