NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Rallies As Meta Soars 12.5%

SP500 Tests New Highs As Oil Prices Fall

SP500 rallied as traders focused on the strong pullback in the oil markets and waited for Trump – Xi summit.

WTI oil pulled back towards the $95.00 level as President Trump indicated that he was open to potential negotiations with Iranian President Pezeshkian. The talks could take place at UN General Assembly this week. Oil traders bet that U.S. and Iran could restart negotiations, which would lead to the reopening of the Strait of Hormuz.

Treasury yields moved lower as bond markets continued to stabilize after Fed Interest Rate Decision. The yield of 2-year Treasuries declined towards the 4.75% level, while the yield of 10-year Treasuries settled near 4.95%. Falling Treasury yields provided additional support to SP500 in today’s trading session.

Traders also prepared for Trump – Xi summit, which could extend the trade truce.

Traders also had a chance to take a look at the Chicago Fed National Activity Index report. The report showed that Chicago Fed National Activity Index decreased from +0.08 in July to -0.04 in August, compared to analyst forecast of +0.2.

Tech stocks were among the biggest gainers today as traders rushed to buy AI-related names. Real estate stocks have also gained ground as traders focused on falling Treasury yields. Energy stocks found themselves under pressure amid pullback in the oil markets.

SP500 rallied above the previous resistance level at 7720 – 7730 and is trying to settle above the 7780 level. In case this attempt is successful, SP500 will move towards the next resistance level, which is located in the 7815 – 7825 range. RSI is in the overbought territory, so the risks of a pullback are increasing.

NASDAQ Soars As Traders Rush To Buy AI-Related Stocks

NASDAQ gained strong upside momentum as demand for tech stocks increased. Meta, which is up by +12.5%, is among the biggest gainers in the NASDAQ index today. The stock rallied as Amazon blocked Microsoft’s Muse AI from shopping on its marketplace.

Currently, NASDAQ is trying to settle above the 30,500 level. In case this attempt is successful, NASDAQ will move towards the next resistance level, which is located in the 30,750 – 30,800 range. I’d note that RSI is in the extremely overbought territory, so the risks of a pullback are rising.

Dow Jones Attempts To Settle Above The 52,000 Level

Dow Jones moved higher amid broad rally in the equity markets. NVIDIA, which was up by +2.3%, was the best performer in the Dow Jones index today. The stock gained strong upside momentum as demand for AI-related shares increased.

The nearest resistance level for Dow Jones is located in the 52,200 – 52,300 range. In case Dow Jones manages to settle above the 52,300 level, it will head towards the next resistance level at 52,700 – 52,800. RSI is in the moderate territory, so there is plenty of room to gain momentum in case the right catalysts emerge.

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