NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Gains Ground As Elon Musk Becomes The World’s First Trillionaire

SP500 Moves Higher As Traders Bet On Iran Deal

SP500 gains ground as traders focus on geopolitical news and react to Michigan Consumer Sentiment report.

Recent reports indicated that U.S. and Iran were moving towards a deal. The memorandum of understanding could extend the ceasefire by two months and provide time to negotiate the details of Iran’s nuclear program, which was the key reason for the U.S. military operation against the country.

The deal would also reopen the Strait of Hormuz and lift the naval blockade of Iranian ports. WTI oil pulled back by -2% as traders focused on news from the Middle East.

Interestingly, Treasury yields moved higher despite falling oil prices. The yield of 2-year Treasuries climbed above the 4.07% level, while the yield of 10-year Treasureis moved above 4.47%. Rising Treasury yields did not put pressure on stocks in today’s trading session.

Michigan Consumer Sentiment increased from 44.8 in May to 48.9 in June, compared to analyst forecast of 46. Current Economic Conditions improved from 45.8 to 48.4, while Index of Consumer Expectations grew from 44.1 to 49.3.

The University of Michigan commented: “This month, consumer sentiment ticked up about four index points, or 9%, with consumers experiencing some relief due to the early-month easing in gasoline prices.”

Year-ahead inflation expectations declined from 4.8% in May to 4.6% in June. Long-run inflation expectations pulled back from 3.9% to 3.4%. From a big picture point of view, inflation expectations remained elevated.

Most market sectors gained ground in today’s trading session. Basic materials stocks were among the biggest gainers as precious metals continued to move higher. Consumer cyclical and healthcare stocks have found themselves under some pressure amid sector rotation.

Currently, SP500 is trying to settle above the resistance level at 7450 – 7460. In case this attempt is successful, SP500 will move towards the next resistance, which is located in the 7540 – 7550 range.

NASDAQ Tests New Highs As Traders Focus On SpaceX IPO

NASDAQ moves higher as traders react to the record SpaceX IPO, which has made Elon Musk the world’s first trillionaire. SpaceX shares gained more than 25% in today’s trading session as traders rushed to buy the hyped stock.

Arm Holdings, which was up by 10.5%, was the biggest gainer in the NASDAQ index today. The stock rallied amid strong demand for AI-related stocks.

NASDAQ settled above the 50 MA at 29,643 and is trying to settle above the resistance at 29,800 – 29,850. In case NASDAQ settles above 29,850, it will head towards the next resistance level, which is located in the 30,250 – 30,300 range. RSI is in the moderate territory, so there is plenty of room to gain momentum in case the right catalysts emerge.

Dow Jones Gains Ground Amid Strong Demand For Financial Stocks

Dow Jones is moving higher amid rising demand for financial stocks. Goldman Sachs, which is up by +2.9%, is the best performer in the Dow Jones index today. The stock gained ground as JPMorgan raised the target price for Goldman Sachs shares.

A successful test of the resistance at 51,000 – 51,100 will push Dow Jones towards the next resistance level at 51,600 – 51,700.  A move above the 51,700 level will open the way to the test of the 52,000 level.

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