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NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Gains Ground As Broadcom Rallies 12.2%

By:
Vladimir Zernov
Published: Jun 13, 2024, 19:25 GMT+00:00

Key Points:

  • SP500 settled near historic highs as traders reacted to PPI data.
  • NASDAQ moved higher as demand for tech stocks remained strong.
  • Dow Jones pulled back as the majority of the index components moved lower.
NASDAQ Index, SP500, Dow Jones Forecasts

In this article:

SP500

SP500
SP500 130624 4h Chart

SP500 gains ground as traders react to Producer Prices reports. PPI declined by 0.2% in May, compared to analyst consensus of +0.1%. Core PPI was unchanged, while analysts expected that it would grow by 0.3%. Treasury yields moved lower as PPI reports showed that inflation was slowing down. The yield of 2-year Treasuries declined below the 4.70% level, while the yield of 10-year Treasuries settled below 4.25%. Falling Treasury yields provided additional support to SP500. Today, traders also had a chance to take a look at the Initial Jobless Claims report. The report indicated that 242,000 Americans filed for unemployment benefits in a week, compared to analyst consensus of 225,000. It should be noted that most market segments have found themselves under pressure in today’s trading session, but the strong performance of tech stocks pushed SP500 higher.

The nearest resistance level for SP500 is located in the 5440 – 5450 range. A move above 5450 will open the way to the test of the 5500 level.

NASDAQ

Dow Jones
Dow Jones 130624 4h Chart

NASDAQ is moving higher as demand for tech stocks remains strong. Broadcom, which is up by 12.2%, is the biggest gainer in the NASDAQ index. The stock rallied as traders reacted to the strong earnings report.

From the technical point of view, NASDAQ needs to settle above the resistance at 19,600 – 19,650 to gain additional upside momentum. It should be noted that RSI remains in the overbought territory, highlighting the risks of a pullback.

Dow Jones

Dow Jones
Dow Jones 130624 4h Chart

Dow Jones rebounds from session lows but remains in the negative territory. The majority of the Dow Jones components are losing ground in today’s trading session, so it remains to be seen whether the index will be able to gain sustainable upside momentum.

A move above the 50 MA at 38,752 will push Dow Jones towards the resistance at 39,000 – 39,100.

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

About the Author

Vladimir is an independent trader and analyst with over 10 years of experience in the financial markets. He is a specialist in stocks, futures, Forex, indices, and commodities areas using long-term positional trading and swing trading.

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