NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Rallies As Micron Soars 12%

SP500 Moves Higher As Traders Buy Tech Stocks

SP500 gains ground amid strong demand for tech stocks. Traders prepare for Alphabet and Tesla reports, which will be released tomorrow.

Treasury yields moved higher as bond traders focused on rising oil prices and bet on hawkish Fed. The yield of 2-year Treasuries moved above the 4.26% level, while the yield of 10-year Treasuries settled above 4.63%. Interestingly, rising Treasury yields did not put any pressure on stocks in today’s trading session.

Oil prices gained ground as U.S. – Iran fighting continued. There are no signs indicating that U.S. and Iran are ready to get back to negotiations. The situation may escalate as Yemen’s Houthis have recently announced that they imposed a maritime blockade on Saudi Arabian ports. At this point, Houthis have not attacked any vessels.

Tech stocks are among the biggest gainers in the SP500 index today. Basic materials stocks have also moved higher as traders reacted to the strong rally in precious metals markets. Energy stocks gained ground, supported by rising oil prices.

Consumer defensive stocks pulled back as demand for safe-haven assets declined. Real estate and utilities stocks have also found themselves under pressure as traders focused on rising Treasury yields.

Currently, SP500 is trying to settle above the 7500 level. In case this attempt is successful, SP500 will get to the test of the 50 MA at 7528. A move above the 50 MA will push SP500 towards the resistance level at 7540 – 7550. In case SP500 climbs above the 7550 level, it will head towards the resistance at 7615 – 7625.

NASDAQ Tests New Highs As Rebound Continues

NASDAQ gained strong upside momentum amid rising demand for AI-related stocks. Micron, which was up by +12%, was among the biggest gainers in the NASDAQ index today.

NASDAQ climbed above the 29,000 level and is moving towards the 50 MA at 29,274. A move above the 50 MA will push NASDAQ towards the resistance at 29,350 – 29,400. If NASDAQ manages to settle above the 29,400 level, it will head towards the next resistance level at 29,850 – 29,900. RSI is in the moderate territory, so there is plenty of room to gain additional momentum in case the right catalysts emerge.

Dow Jones Attempts To Settle Above 52,200

Dow Jones gained ground amid broad rally in the equity markets. 3M, which was up by +7%, was the biggest gainer in the Dow Jones index today. The stock rallied as the company’s earnings report beat analyst estimates on both earnings and revenue. The company has also lifted its annual guidance, providing additional support to the stock.

From the technical point of view, Dow Jones attempts to settle back above the support level at 52,100 – 52,200. In case this attempt is successful, Dow Jones will move towards the 50 MA at 52,392. If Dow Jones climbs above the 50 MA, it will head towards the resistance level at 52,700 – 52,800.

On the support side, a move below the 52,000 level will push Dow Jones towards recent lows near the 51,800 level. If Dow Jones pulls back below 51,800, it will head towards the support at 51,400 – 51,500.

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