NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Gains Ground As Marvell Technology Soars 7.2%

SP500 Moved Lower As Inflation Rate Jumped To 3.3%

SP500 is losing some ground as traders focus on CPI data and wait for U.S. – Iran negotiations in Islamabad.

Inflation Rate increased from 2.4% in February to 3.3% in March, in line with analyst expectations. Rising gasoline prices pushed inflation to yearly highs. Core Inflation Rate grew from 2.5% in February to 2.6% in March, while analysts expected that it would increase to 2.7%.

Michigan Consumer Sentiment report decreased from 53.3 in March to 47.6 in April, compared to analyst forecast of 52. It should be noted that 98% of interviews made for the report were completed prior to the announcement of the temporary ceasefire in the Middle East.

Year-ahead inflation expectations increased from 3.8% in March to 4.8% in April as consumers worried about the impact of high energy prices. Long-run inflation expectations grew from 3.2% to 3.4%.

Oil prices have recently started to move lower as traders bet on successful negotiations between U.S. and Iran. WTI oil pulled back towards the $96.50 level, while Brent oil declined below the $95.00 level.

According to recent reports, Iran wants to unblock its frozen assets ahead of negotiations. It remains to be seen whether U.S. is ready for such a move, but markets are optimistic.

Basic materials and tech stocks were among the biggest gainers today. Healthcare and consumer defensive stocks found themselves under strong pressure.

SP500 remains stuck below the nearest resistance level at 6850 – 6860. If SP500 climbs above the 6860 level, it will move towards the next resistance at 6910 – 6920. RSI has recently moved into 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 6800 level will push SP500 towards the nearest support, which is located in the 6760 – 6770 range.

NASDAQ Moves Higher Amid Strong Demand For Chip Stocks

NASDAQ gained some ground as demand for chip stocks increased. Marvell Technology, which was up by 7.2%, was the biggest gainer in the NASDAQ index today. The company’s shares rallied amid strong demand for chip stocks. NVIDIA and Advanced Micro Devices were among the best performers in the index.

NASDAQ is stuck near the resistance level at 25,150 – 25,200. If NASDAQ climbs above the 25,200 level, it will move towards the next resistance at 25,750 – 25,800.

On the support side, a move below the 25,000 level will push NASDAQ towards the 24,800 level. In case NASDAQ declines below the 24,800 level, it will head towards the support at 24,350 – 24,400.

Dow Jones Retreats Amid Profit-Taking

Dow Jones pulled back as most stocks in the index moved lower. NVIDIA, Amazon, Caterpillar and Goldman Sachs were the only gainers in the Dow Jones index today.

Salesforce, which was down by 3.5%, tested new lows as traders worried that products from Anthropic and OpenAI would hurt the company’s business. From a big picture point of view, there are no signs of a rebound in the software sector.

In case Dow Jones stays below the 48,000 level, it will head towards the nearest support level at 47,400 – 47,500. On the upside, a successful test of the resistance at 48,200 – 48,300 will open the way to the test of the next resistance level at 49,000 – 49,100.

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