NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Rallies As Meta Gains 21.5%

Key Insights

• SP500 tested new highs after the strong Non Farm Payrolls report. 
• NASDAQ moved above 17,650, supported by rallies in Meta and Amazon stocks. 
• Dow Jones gained ground amid a broad rally in the equity markets. 

SP500

SP500 gains ground as traders react to the strong Non Farm Payrolls report. The report indicated that U.S. economy added 353,000 jobs in January, compared to analyst consensus of 180,000.  The previous reading was revised from 216,000 to 333,000, highlighting the strength of the job market. Unemployment Rate remained unchanged at 3.7%, while analysts expected that it would increase to 3.8%. Michigan Consumer Sentiment increased from 69.7 in December to 79 in January. Treasury yields rallied as traders reacted to the encouraging reports. Fed may be forced to keep the federal funds rate at current levels due to the strength of the economy. The yield of 2-year Treasuries tested the 4.40% level, while the yield of 10-year Treasuries climbed back above 4.00%. Rising yields did not put pressure on major indices as traders remained bullish.

From the technical point of view, SP500 is moving towards the psychologically important 5000 level. RSI is in the moderate territory, and there is plenty of room to gain additional upside momentum.

NASDAQ

NASDAQ tests new highs due to huge rallies in Meta and Amazon stocks. Meta is up by 21.5% after announcing the first cash dividend in its history. Amazon gained 8% as traders reacted to the strong earnings report. Analysts rushed to raise price targets for Amazon, providing additional support to the company’s shares.

A move above the 17,700 level will open the way to the test of the 18,000 level. NASDAQ is in the unchartered territory, so resistance levels have not been formed.

Dow Jones

Dow Jones tests resistance at 38,500 – 38,550 amid a broad rally in the equity markets. Chevron is the biggest gainer in the Dow Jones index today. The stock is up by 2.8% despite the sell-off in the oil markets as the company’s earnings beat analyst estimates.

RSI is close to the overbought territory but there is enough room to gain additional momentum in the upcoming trading sessions.

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