NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Moves Higher As Amazon Gains 4.4%

SP500 Moves Higher As Traders Focus On Potential De-Escalation In The Middle East

SP500 gains ground as traders ignore the weak GDP Growth Rate data and focus on geopolitical developments.

GDP Growth Rate  was +0.5% in the fourth quarter, compared to analyst forecast of +0.7%.

Today, traders also focused on PCE reports. PCE Price Index increased by +0.4% month-over-month in February, in line with analyst estimates. Core PCE Price Index grew by +0.4%, meeting expectations. PCE Price Index is Fed’s favourite inflation gauge.

Initial Jobless Claims report showed that 219,000 Americans filed for unemployment benefits in a week, compared to analyst forecast of 210,000. Personal Income declined by -0.1% month-over-month in February, compared to analyst consensus of +0.3%. Personal Spending increased by +0.5% in February, in line with analyst estimates.

Stocks were moving lower at the start of the trading session as traders reacted to disappointing economic reports. However, the situation changed quickly when Israel announced that it was ready to negotiate with Lebanon. Right now, geopolitical catalysts are more important than economic data for markets.

WTI oil declined from session highs and pulled back below the $100 level as traders reacted to Israel’s decision. However, the market remains nervous amid fragile ceasefire between U.S. and Iran. Meanwhile, Israel continues its operation against Hezbollah in Lebanon.

Most market sectors moved higher in today’s trading session. Energy stocks found themselves under pressure as traders continued to take profits after the strong rally.

The nearest resistance level for SP500 is located in the 6850 – 6860 range. If SP500 climbs above the 6860 level, it will head towards the next resistance at 6910 – 6920. RSI is in the overbought territory, but there is enough room to gain additional upside momentum in case the right catalysts emerge.

NASDAQ Gains Ground Amid Rising Demand For AI Stocks

NASDAQ moved higher, supported by geopolitical developments. Amazon, which was up by 4.4%, was the biggest gainer in the NASDAQ index today. The stock rallied as Amazon CEO said that the company would sell its AI chips to third parties in the future.

Chip stocks gained strong momentum as traders focused on rising demand for AI. It should be noted that software stocks suffered strong pullbacks in today’s trading session. Traders remain worried that AI will destroy the business of software companies.

NASDAQ is moving towards the resistance level at 25,150 – 25,200. If NASDAQ settles above the 25,200 level, it will head towards the next resistance, which is located in the 25,750 – 25,800 range.

Dow Jones Tests Resistance At 48,200 – 48,300

Dow Jones tests new highs as traders bet on de-escalation in the Middle East. Most stocks in the Dow Jones index gained ground in today’s trading session.

Salesforce  was down by 3.8% amid fears about Anthropics Mythos model. From a big picture point of view, any AI-related announcement puts significant pressure on software stocks.

Currently, Dow Jones attempts to settle above the resistance at 48,200 – 48,300. In case this attempt is successful, Dow Jones will move towards the next resistance level at 49,000 – 49,100. RSI is in the overbought territory, but there is enough room to gain additional momentum.

On the support side, a move below the 48,000 level will push Dow Jones towards the nearest support, which is located in the 47,400 – 47,500 range.

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