SP500 Moves Higher Amid Rising Demand For Tech Stocks
SP500 gains ground as traders stay focused on Anthropic IPO filing and prepare for the Fed Interest Rate Decision, which will be released tomorrow.
Anthropic’s filing indicated that the company enjoyed robust revenue growth while its customer base was broad. According to the filing, just 21% of the company’s revenue came from top five clients.
Strong economic data provided additional support to SP500 in today’s trading session. Durable Goods Orders increased by +1.8% month-over-month in September, compared to analyst forecast of +1.5%. Durable Goods Orders Ex Transp increased by +0.5%, while analysts expected that they would grow by +0.6%.
Case-Shiller Home Price index report indicated that home prices increased by +2.7% year-over-year in August, exceeding the analyst estimates of +2.5%.
New Home Sales declined by -0.6% month-over-month in September, while analysts expected that they would fall by -3.5% amid high interest rates.
CB Consumer Confidence improved from 84.2 in September to 91.7 in October, compared to analyst forecast of 81.
FedWatch Tool indicates that there is a 92.8% probability that Fed will keep the federal funds rate unchanged tomorrow. Treasury yields gained some ground as bond traders prepared for Fed meeting. The yield of 2-year Treasuries climbed above the 4.73% level, while the yield of 10-year Treasuries settled near 4.99%.
Oil prices pulled back as traders focused on Saudi Arabia’s efforts to restart U.S. – Iran talks. The pullback was not strong as oil traders remain worried that U.S. and Israel could restart the military operation against Iran after midterm elections in the U.S.
Basic materials stocks were among the biggest gainers in the SP500 index today as traders focused on the rebound in gold and silver markets. Tech stocks have also gained strong upside momentum. Energy stocks found themselves under pressure amid pullback in the oil markets. Real estate and consumer defensive stocks moved lower as demand for safe-haven assets declined.
Currently, SP500 is trying to settle above the resistance level at 7720 – 7730. In case this attempt is successful, SP500 will head towards the next resistance, which is located in the 7780 – 7790 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 Tests Resistance At 29,700 – 29,750
NASDAQ rallied as demand for tech stocks increased after Anthropic’s IPO filing showed robust revenue growth.
From the technical point of view, NASDAQ settled above the 50 MA at 29,453 and is trying to settle above the resistance at 29,700 – 29,750. In case this attempt is successful, NASDAQ will move towards the next resistance, which is located in the 30,150 – 30,200 range.
On the support side, a move below the 29,500 level will push NASDAQ towards the 50 MA. If NASDAQ manages to settle below the 50 MA, it will head towards the support level at 29,250 – 29,300.
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See all Dow Jones forecastsDow Jones Stays Range-Bound As Boeing Dives 11%
Dow Jones remains stuck in a tight range due to the strong sell-off in Boeing stock. Boeing is down by -11% on aircraft delivery delays. The company’s earnings report missed analyst expectations, putting additional pressure on the stock.
If Dow Jones settles above the 52,400 level, it will head towards the resistance at 52,800 – 52,900. On the support side, a move below 52,300 will push Dow Jones towards the support at 51,700 – 51,800.
For a look at all of today’s economic events, check out our economic calendar.