NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Rallies As AMD Gains 9%

Key Insights

• SP500 moved towards the 4600 level amid strong demand for tech stocks. 
• NASDAQ enjoyed a strong rally and climbed back above the 16,000 level. 
• Dow Jones’ gains were limited due to the pullback in Merck stock. 

SP500

SP500 gains ground as traders buy AI-related stocks. Advanced Micro Devices, which is up by 9%, is the biggest gainer in today’s trading session. Today, traders also focused on the Initial Jobless Claims report. The report showed that 220,000 Americans filed for unemployment benefits in a week, compared to analyst consensus of 222,000.  Treasury yields were mostly flat as bond traders waited for additional catalysts after the recent moves. Today’s rally was broad, and the majority of market segments were moving higher. However, energy stocks remained under pressure as oil markets tested new lows amid worries about demand for oil in China.

From the technical point of view, SP500 continues its attempts to settle above the key resistance at 4575 – 4600. If SP500 settles above the 4600 level, it will gain additional upside momentum and head towards the next resistance at 4730 – 4750.

NASDAQ

NASDAQ moved back above the 16,000 level amid a strong rally in tech stocks. AI euphoria remains the key positive catalyst for NASDAQ index.

NASDAQ has been consolidating near the 16,000 level since mid-November. RSI remains in the moderate territory, so there is plenty of room to gain momentum in case the right catalysts emerge. From the technical point of view, NASDAQ needs to settle above 16,000 to move towards the next resistance at 16,400 – 16,500.

Dow Jones

Dow Jones gained some ground in today’s trading session. Dow Jones’ gains were limited by the pullback in Merck stock, which was down by more than 1% after the company scrapped phase 3 study of a combination of two drugs to treat certain lung cancer patients.

The nearest resistance level for Dow Jones is located in the 36,350 – 36,500 range. A move above 36,500 will provide Dow Jones with an opportunity to gain additional upside momentum.

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