NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Pulled Back As Oracle Dived 11%

SP500

SP500 moved back into positive territory despite the disappointing Initial Jobless Claims report. The report indicated that 236,000 Americans filed for unemployment benefits in a week, compared to analyst forecast of 220,000. Fed’s decision to start buying shorter-term Treasury securities provided additional support to major indices. Basic materials stocks were among the biggest gainers in the SP500 today as silver markets tested historic highs. Tech stocks found themselves under pressure as traders focused on the sell-off in Oracle stock.

Currently, SP500 is trying to settle above the resistance at 6870 – 6880. In case this attempt is successful, SP500 will move towards the next resistance level, which is located in the 6930 – 6940 range. RSI is in the moderate territory, so there is plenty of room to gain additional upside momentum in case the right catalysts emerge.

NASDAQ

NASDAQ is losing ground as traders react to Oracle’s earnings report. The report showed that capex surged, leading to cash burn of $10 billion. From a big picture point of view, traders worry about the negative impact of AI-related spending. However, NASDAQ managed to rebound from session lows as traders used the pullback as an opportunity to increase their long positions at attractive levels.

A successful test of the resistance at 25,750 – 25,800 will push NASDAQ towards the next resistance level at 26,250 – 26,300.

Dow Jones

Dow Jones rallied as Visa gained 5.5%. The shares gained upside momentum as BofA Securities upgraded the stock from Neutral to Buy with a price target of $382. Rising demand for healthcare and industrials stocks provided additional support to Dow Jones index in today’s trading session.

Dow Jones managed to settle above the previous resistance at 47,900 – 48,000 and moved towards the 48,700 level. In case Dow Jones settles above the resistance at 48,700 – 48,800, it will get to the test of the 49.000 level.

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