NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Rallies Ahead Of NVIDIA’s Report

Key Insights

• SP500 gained upside momentum as traders focused on the pullback in Treasury yields. 
• NASDAQ rallied as traders prepared for NVIDIA’s earnings report. 
• Dow Jones gained some ground amid a broad rally in the equity markets. 

SP500

SP500 gains ground as traders react to the disappointing PMI reports. The reports showed that Manufacturing PMI declined from 49 in July to 47 in August, while Services PMI decreased from 52.3 to 51. New Home Sales increased by 4.4% month-over-month in July, compared to analyst consensus of -1.6%. The PMI reports triggered a strong pullback in Treasury yields as bond traders bet on a more dovish Fed. Lower Treasury yields provided material support to major indices, which enjoyed a strong rally.

In case SP500 settles back above the resistance at 4430 – 4450, it will move towards the next resistance level, which is located in the 4575 – 4600 range.

NASDAQ

NASDAQ gained strong upside momentum ahead of NVIDIA’s earnings report. NVIDIA’s stock is up by almost 3% ahead of this important report, which will have a significant impact on NASDAQ dynamics.

From the technical point of view, NASDAQ settled near the resistance at 15,200 – 15,300. In case NASDAQ manages to settle above the 15,300 level, it will head towards the next resistance at 15,900 – 16,000.

Dow Jones

Dow Jones has also moved higher in today’s trading session. However, this move was not strong as Dow Jones faced material resistance in the 34,500 – 34,600 range.

In case Dow Jones fails to settle above the resistance at 34,600, it will gain downside momentum and move towards the 34,000 level. A move below the 34,000 level will open the way to the test of the support at 33,600 – 33,700.

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