NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Gains Ground As NVIDIA Tests Historic Highs

SP500 Tests New Highs As Traders Stay Bullish

SP500 gains ground as traders prepare for key reports from tech companies and focus on the upcoming Fed decision, which will be released on Wednesday.

Today, trades had a chance to take a look at the Dallas Fed Manufacturing Index report for April. The report showed that Dallas Fed Manufacturing Index declined from -0.2 to -2.3, compared to analyst consensus of -0.8.

Oil prices moved higher amid lack of progress in U.S. – Iran negotiations. However, this move did not put material pressure on stocks as traders focused on tech earnings, which will be released this week.

Stock traders have also ignored rising Treasury yields. The yield of 2-year Treasuries moved above the 3.80% level, while the yield of 10-year Treasuries climbed towards 4.34%.

Consumer defensive and consumer cyclical stocks were among the biggest losers today. Financial and energy stocks gained ground in today’s trading session.

From the technical point of view, SP500 continues its attempts to settle above the resistance level at 7170 – 7180. If SP500 manages to settle above the 7180 level, it will head towards the 7250 level. RSI remains in the moderate territory, so there is plenty of room to gain momentum in case the right catalysts emerge.

NASDAQ Moves Higher As Traders Wait For Big Tech Earnings Reports

NASDAQ settled near historic highs as traders waited for Big Tech earnings. NVIDIA stock tested new highs amid AI-related optimism, which was triggered by the recent report from Intel. The report highlighted strong AI CPU demand.

It should be noted that some chip stocks suffered a sell-off in today’s trading session. Arm Holdings, which was down by 8%, was the biggest loser in the NASDAQ index today. The stock pulled back as traders rushed to take profits off the table after the strong rally.

NASDAQ has recently made an attempt to settle above the resistance at 27,350 – 27,400 but lost momentum and pulled back. If NASDAQ climbs above the 27,400 level, it will head towards the 28,000 level.

On the support side, a move below 27,200 will push NASDAQ towards the nearest support, which is located in the 26,950 – 27,000 range.

Dow Jones Remains Stuck Near Support At 49,000 – 49,100

Dow Jones is mostly flat amid falling demand for consumer stocks. McDonald’s, which is down by 2.7%, is the worst performer in the Dow Jones index today. It should be noted that rising oil prices did not put significant pressure on the Dow Jones index as traders remained optimistic ahead of Fed decision and key earnings reports.

Dow Jones settled above the support level at 49,000 – 49,100. If Dow Jones declines below the 49,000 level, it will head towards the next support level at 48,200 – 48,300.

On the upside, Dow Jones needs to stay above the 49,100 level to have a chance to gain upside momentum in the near term. If Dow Jones settles above 49,100, it will move towards the nearest resistance at 49,700 – 49,800. A move above the 49,800 level will push Dow Jones towards the psychologically important 50,000 level.

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