NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Moves Higher As SpaceX Soars 12%

SP500 Moves Higher As Non Farm Payrolls Drop

SP500 gains ground as traders focus on the weak Non Farm Payrolls report. The report showed that U.S. economy lost -23,000 jobs in July, compared to analyst consensus of 80,000.

Unemployment Rate declined from 4.2% in June to 4.1% in July as Participation Rate decreased from 61.5% to 61.4%.

The weak Non Farm Payrolls data changed Fed policy outlook. FedWatch Tool indicates that there is a 56.1% probability that Fed will keep rates unchanged in September.

Before the NFP report was released, traders expected that Fed will raise rates at the next meeting to fight inflation. That said, the market continues to expect that Fed will raise rates by the end of the year.

Treasury yields pulled back as bond traders reacted to job market data. The yield of 2-year Treasuries declined towards the 4.20% level, while the yield of 10-year Treasuries settled near 4.65%. Falling Treasury yields provided additional support to SP500.

Basic materials stocks were among the biggest gainers as traders reacted to the strong rally in precious metals markets. Industrials and consumer cyclical stocks have also gained strong upside momentum.

Energy stocks were among the biggest losers despite the rebound in natural gas markets.

SP500 settled above the support at 7720 – 7730 and is trying to settle above the 7750 level. In case this attempt is successful, SP500 will head towards the next resistance, which is located at historic highs in the 7790 – 7800 range. RSI is in the moderate territory, so there is enough room to gain additional upside momentum in case the right catalysts emerge.

NASDAQ Gains Ground As Traders Focus On Falling Treasury Yields

NASDAQ moved higher, supported by rising demand for tech stocks. SpaceX, which was up by +12%, was among the biggest gainers in the NASDAQ index today. The stock rallied as Argus upgraded SpaceX from Hold to Buy. Traders are using the strong pullback from historic highs to buy SpaceX shares at attractive levels.

The nearest resistance level for NASDAQ is located in the 29,850 – 29,900 range. In case NASDAQ climbs above the 29,900 level, it will head towards the next resistance at 30,350 – 30,400.

On the support side, a move below the 29,500 level will push NASDAQ towards the nearest support at 29,200 – 29,250.

Dow Jones Tests The 54,000 Level

Dow Jones moved higher as traders bought the dip. Salesforce, which was up by +2.5%, was the biggest gainer in the Dow Jones index. Honeywell, which gained +2.1%, was also among the best performers in the index today.

Currently, Dow Jones attempts to settle above the resistance level at 54,000 – 54,100. If Dow Jones manages to settle above the 54,100 level, it will move towards the next resistance, which is located in the 54,600 – 54,700 range. A move above the 54,700 level will push Dow Jones towards the 55,000 level.

On the support side, Dow Jones needs to settle below the 53,750 level to gain downside momentum in the near term. In this case, Dow Jones will head towards the support level at 53,300 – 53,400.

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