NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Moves Higher As Apple Gains 4%

SP500 Moves Higher As PPI Misses Analyst Estimates

SP500 gains ground as traders react to Producer Prices report. The report indicated that PPI declined by -0.3% month-over-month in June, compared to analyst forecast of 0%.

Core PPI increased by +0.2%, compared to analyst consensus of +0.4%. PPI data put material pressure on Treasury yields as bond traders reduced their bets on hawkish Fed. The yield of 2-year Treasuries pulled back towards the 4.12% level, while the yield of 10-year Treasuries settled below 4.55%. Falling Treasury yields provided additional support to SP500.

Oil prices moved lower as oil traders took some profits off the table after the strong rally. However, U.S. and Iran continue to attack each other, so it remains to be seen whether current pullback in the oil markets is sustainable. Rising oil prices may put some pressure on SP500 as traders will worry about inflation despite recent CPI and PPI reports.

Consumer cyclical and financial stocks were among the biggest gainers today. Energy stocks found themselves under pressure as traders reacted to the pullback in the oil markets. Tech stocks have also moved lower.

SP500 settled above the support at 7540 – 7550 and is trying to settle above the 7580 level. In case this attempt is successful, SP500 will head towards the nearest resistance level, which is located in the 7615 – 7625 range. RSI is in the moderate territory, so there is plenty of room to gain momentum in case the right catalysts emerge.

On the support side, a successful test of the support at 7540 – 7550 will open the way to the test of the next support level at 7450 – 7460.

NASDAQ Stays Above 29,400 Despite Pullback In The Tech Sector

NASDAQ gained ground despite the pullback in the tech sector. Apple, Alphabet, Microsoft, and Amazon were among the biggest gainers in the NASDAQ index today.

Meanwhile, AI memory and chip stocks found themselves under pressure amid valuation worries.

NASDAQ declined below the 50 MA at 29,517 and made an attempt to settle below the support level at 29,350 – 29,400. If NASDAQ manages to settle below the 29,350 level, it will head towards the next support, which is located in the 28,800 – 28,850 range.

On the upside, a move above the 50 MA at 29,517 will push NASDAQ towards the resistance level at 29,800 – 29,850. This resistance level has been tested many times and proved its strength.

Dow Jones Remains Stuck Below The 52,800 Level

Dow Jones made an attempt to settle above the resistance level at 52,700 – 52,800 as traders focused on the pullback in Treasury yields.

Apple, Alphabet, and Microsoft were the biggest gainers in the Dow Jones index today. Cisco , which was down by -4.5%, was the worst performer in the index.

In case Dow Jones manages to settle above the 52,800 level, it will move towards the resistance level at 53,300 – 53,400. A move above the 53,400 level will push Dow Jones towards the 54,000 level.

On the support side, a move below the 52,500 level will open the way to the test of the support at 52,100 – 52,200.

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