NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Gains Ground As NVIDIA Rallies 4.4%

SP500

SP500 rebounds from session lows as traders react to the disappointing ISM Manufacturing PMI report. The report indicated that ISM Manufacturing PMI declined from 49.2 in April to 48.7 in May, compared to analyst consensus of 49.6. Numbers below 50 show contraction. The weak report triggered a pullback in Treasury yields as bond traders bet on a less hawkish Fed. The yield of 2-year Treasuries settled near 4.82%, while the yield of 10-year Treasuries pulled back towards the 4.40% level. Falling Treasury yields provided some support to major indices in today’s trading session. Energy stocks were among the worst performers in the SP500 index today. Traders focused on the strong sell-off in the oil markets, which was caused by OPEC+ decision to phase out production cuts. OPEC+ will boost production in October, in case market conditions permit.

The nearest resistance level for SP500 is located in the 5270 – 5280 range. In case SP500 manages to settle above the 5280 level, it will gain additional upside momentum and move towards the next resistance at 5320 – 5330.

NASDAQ

NASDAQ gains some ground as demand for tech stocks remains strong. NVIDIA, which is up by 4.4%, is among the best performers in the NASDAQ index today. Other AI-related stocks have also enjoyed support in today’s trading session.

From the technical point of view, NASDAQ needs to settle above the nearest resistance at 18,600 – 18,700 to have a chance to gain additional upside momentum.

Dow Jones

Dow Jones is losing ground as Chevron is down by 3.3%. Most stocks in the index have also found themselves under pressure despite falling Treasury yields.

Currently, Dow Jones is trying to climb back above the resistance at 38,500 – 38,550. In case this attempt is successful, Dow Jones will move towards the next resistance level, which is located in the 39,000 – 39,100 range.

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