NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Moves Higher As Tech Stocks Rebound

Key Insights

• SP500 gained some ground as traders reacted to Non Farm Payrolls data. 
• NASDAQ managed to move higher despite rising Treasury yields. 
• Dow Jones settled near the key support at 37,400 – 37,500.

SP500

SP500 is moving higher as traders react to economic data. Non Farm Payrolls report showed that the economy added 216,000 jobs in December. Analysts expected Non Farm Payrolls of 170,000, so the report has significantly exceeded analyst expectations. Unemployment Rate remained unchanged at 3.7%, compared to analyst consensus of 3.8%. Overall, the job market remains in a decent shape. Interestingly, markets believe that it won’t be a problem for a Fed and expect that rate cuts in March are still possible. Today, traders also had a chance to take a look at ISM Services PMI report, which showed that ISM Services PMI declined from 52.6 in November to 50.6 in December. Numbers above 50 show expansion. Factory Orders increased by 2.6% month-over-month in November, compared to analyst forecast of +2.1%. Treasury yields continued to rebound as bond traders reduced their bets on dovish Fed, but this move did not have a significant impact on SP500.

The nearest resistance for SP500 is located in the 4730 – 4750 range. A move above 4750 will push SP500 towards the next resistance at 4810 – 4820.

NASDAQ

NASDAQ is also moving higher despite the rebound in Treasury yields. Traders are using the recent pullback to increase their long positions in tech stocks, which is bullish for the tech-heavy NASDAQ.

In case NASDAQ climbs above the resistance at 16,400 – 16,500, it will move towards the next resistance level at 16,750 – 16,800.

Dow Jones

Dow Jones is mostly flat in today’s trading. Healthcare and Consumer Defensive stocks have found themselves under some pressure today as traders moved their funds into riskier assets.

From the technical point of view, Dow Jones did not settle below the support at 37,400 – 37,500, which was an encouraging development for the bulls.

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