NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Gains Ground As AMD Soars 6.9%

SP500 Moves Higher As ISM Services PMI Meets Estimates

SP500 gains ground as traders react to ISM Services PMI report. The report indicated that ISM Services PMI declined from 54.5 in May to 54.0 in June, compared to analyst forecast of 54.0. Numbers above 50 show expansion.

The yield of 2-year Treasuries pulled back towards the 4.12% level as traders reduced bets on hawkish Fed, providing some support to stocks. However, traders should keep an eye on the dynamics of 30-year Treasuries. The yield of 30-year Treasuries is trying to settle back above the 5.00% level as bond traders worry about longer-term rate outlook.

Oil prices moved lower as Saudi Arabia offered discounts to Asian buyers. The bearish oil market outlook may provide additional support to stocks.

Tech stocks were among the biggest gainers today as demand for AI-related shares increased. Consumer cyclical and financial stocks have also managed to gain ground in today’s trading session.

Consumer defensive and healthcare stocks were among the biggest losers as demand for safe-haven assets declined. Interestingly, basic materials stocks were mostly flat despite the pullback in precious metals markets.

Currently, SP500 is trying to settle above the resistance at 7540 – 7550. In case this attempt is successful, SP500 will head towards the next resistance level, which is located in the 7615 – 7625 range. RSI remains in the moderate territory, so there is plenty of room to gain additional upside momentum in case the right catalysts emerge.

On the support side, a move below the 7500 level will push SP500 towards the nearest support level at 7450 – 7460.

NASDAQ Tests Resistance At 29,800 – 29,850

NASDAQ moved higher amid strong demand for tech stocks. Advanced Micro Devices, which is up by 6.9%, is among the biggest gainers in the NASDAQ index today. The stock rallied as Goldman raised the price target for AMD shares from $450 to $640.

Broadcom gained 4.1% after the company extended its chip supply partnership with Apple through 2031.

From the technical point of view, NASDAQ attempts to settle above the resistance level at 29,800 – 29,850. In case NASDAQ manages to settle above the 29,850 level, it will head towards the next resistance level, which is located in the 30,300 – 30,350 range. A move above hte 30,350 level will push NASDAQ towards the 30,800 level.

Dow Jones Attempts To Settle Above 53,000

Dow Jones gained some ground amid broad rally in the equity markets. It should be noted that falling demand for healthcare and financial stocks has put some pressure on the Dow Jones index today.

Boeing, which was up by 3.4%, was the biggest gainer in the Dow Jones index. Alphabet and Apple have also managed to gain ground amid rising demand for tech stocks.

Dow Jones has recently made an attempt to settle below the 52,700 level but lost momentum and rebounded towards the 53,000 level. In case Dow Jones settles above 53,000, it will head towards the 53,500 level.

On the support side, a move below the 53,600 level will push Dow Jones towards the nearest support, which is located in the 52,100 – 52,200 range.

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