NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Moves Higher As Traders Shrug Off Worries About Fed Independence

SP500

SP500 tests historic highs as traders shrug off worries about Fed independence. DOJ opened probe into Fed’s Powell, sending shockwaves across markets. Fed Chair noted that he would strongly defend Fed independence. Treasury yields moved higher while the U.S. dollar pulled back. These moves had little impact on major indices as traders focused on AI-related stocks. Basic materials stocks were also among the biggest winners today as gold and silver markets tested historic highs. Traders also prepared for inflation data, which will be released tomorrow. Analysts expect that Inflation Rate remained unchanged at 2.7% in December, while Core Inflation rate increased from 2.6% to 2.7%.

SP500 climbed back above the resistance at 6940 – 6950 and is heading towards the 7000 level. A move above this level will open the way to the test of the 7050 level.

NASDAQ

NASDAQ gains ground amid rising demand for tech stocks. Western Digital and Seagate are among the biggest gainers today as traders bet on rising demand for memory chips from AI projects.

Currently, NASDAQ is trying to settle above the resistance at 25,800 – 25,850. In case this attempt is successful, NASDAQ will head towards the 26,500 level.

Dow Jones

Dow Jones climbed back towards the resistance at 49,500 – 49,600 amid rising demand for consumer defensive stocks. Walmart, which was up by 3.5%, was the biggest gainer in the Dow Jones index today. The stock moved higher as traders focused on the AI deal with Google. American Express dived 4.3% as U.S. President Donald Trump proposed a 10% cap on the interest rate on credit cards.

A move above the 49,600 level will push Dow Jones towards the 50,000 level. RSI is in the moderate territory, so there is enough room to gain additional upside momentum in case the right catalysts emerge.

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