NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Rallies As NVIDIA Signs A Deal With Saudi Arabia

SP500

SP500 gained ground as traders reacted to U.S. inflation reports. Inflation Rate decreased from 2.4% in March to 2.3% in April, while analysts expected that it would remain unchanged at 2.4%. Core Inflation Rate remained unchanged at 2.8% on a year-over-year basis, in line with analyst estimates. Interestingly, Treasury yields moved higher despite the lower-than-expected Inflation Rate report. Bond traders believe that Fed will not rush to cut rates. Tech and energy stocks were among the biggest gainers in the SP500 index today. Healthcare stocks remained under pressure amid concerns regarding Trump’s executive order to lower the prices of medicines.

The nearest resistance level for SP500 is located in the 5910 – 5920 range. If SP500 settles above the 5920 level, it will move towards the next resistance level at 6000 – 6010. Traders should note that RSI is in the extremely overbought territory, so the risks of a pullback are increasing.

NASDAQ

NASDAQ tested new highs as traders focused on the inflation data. NVIDIA and Tesla, which are up by roughly 6%, are among the biggest gainers in the NASDAQ index today. NVIDIA signed a deal with Saudi Arabia to sell its AI chips, which was bullish for the stock.

From the technical point of view, NASDAQ settled above the previous resistance at 20,950 – 21,000 and is trying to settle above the 21,200 level. In case this attempt is successful, NASDAQ will head towards the resistance at 21,450 – 21,500.

Dow Jones

Dow Jones pulled back despite the rally in NVIDIA stock. The strong sell-off in Unitedhealth Group stock, which is down by 17.7%, put significant pressure on the Dow Jones index. Unitedhealth Group suspended its 2025 guideance due to rising medical costs while its CEO decided to step down.

A move below the support at 42,000 – 42,100 will push Dow Jones towards the 50 MA at 41,391.

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