SP500 Moves Higher As Traders React To ISM Manufacturing PMI Report
SP500 gains ground as traders react to economic reports and focus on the pullback in Treasury yields.
ISM Manufacturing PMI declined from 54.6 in August to 54.5 in September, compared to analyst consensus of 55. Numbers above 50 show expansion. The report highlighted the strength of the U.S. economy.
Initial Jobless Claims report showed that 197,000 Americans filed for unemployment benefits in a week, compared to analyst forecast of 200,000. The report showed that the job market remained strong.
Treasury yields pulled back as bond traders rushed to buy U.S. debt after the strong pullback. The yield of 2-year Treasuries declined below the 4.80% level, while the yield of 10-year Treasuries settled below 5.25%. Rising demand for U.S. debt could have been triggered by rebalancing at the start of the new quarter. Anyway, falling Treasury yields provided some support to SP500.
Oil prices rallies as President Trump signaled that U.S. could bomb Iran after midterm elections. Trump’s hawkish comments triggered a strong rally, pushing WTI oil towards the $93.00 level. Rising oil prices did not put material pressure on SP500 today.
Not surprisingly, energy stocks were among the biggest gainers in the SP500 today. Tech stocks have also gained strong upside momentum. Basic materials and healthcare stocks were among the biggest losers in today’s trading session.
In case SP500 climbs back above the 7700 level, it will head towards the resistance at 7720 – 7730. A move above the 7730 level will open the way to the test of the next resistance at 7815 – 7825.
On the support side, a move below the 7660 level will push SP500 towards the nearest support, which is located in the 7615 – 7625 range.
NASDAQ Gains Ground As Traders Buy Tech Stocks
NASDAQ moved higher amid strong demand for tech stocks. Synopsis, which gained 13.1%, was the biggest gainer in the NASDAQ index today. The stock rallied as traders focused on AI deal with OpenAI.
Currently, NASDAQ is trying to settle back above the 50 MA at 30,498. In case this attempt is successful, NASDAQ will head towards the resistance at 30,750 – 30,800. A move above the 30,800 level will open the way to the test of the 31,000 level.
On the support side, a successful test of the support at 30,200 – 30,250 will push NASDAQ towards the support level at 29,850 – 29,900.
Dow Jones Price Forecast
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See all Dow Jones forecastsDow Jones Moves Away From Session Lows
Dow Jones is mostly flat as traders focus on the pullback in Treasury yields and react to rising oil prices. IBM, which is up by +3.7%, is the best performer in the Dow Jones index today.
The nearest resistance level for Dow Jones is located in the 51,100 – 51,200 range. If Dow Jones manages to settle above the 51,200 level, it will head towards the 50 MA at 51,497. A move above the 50 MA will open the way to the test of the resistance at 51,600 – 51,700.
On the support side, a move below the 50,700 level will push Dow Jones towards the nearest support at 50,300 – 50,400.
For a look at all of today’s economic events, check out our economic calendar.
