NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Rallies As Qualcomm Soars 12.2%

SP500

SP500 rallied as U.S. and China negotiators signaled that trade talks were going well. U.S. President Trump and Chinese President Xi are expected to reveal a trade truce or a trade deal in the upcoming days. Meanwhile, traders wait for earnings reports from Microsoft, Alphabet, Amazon, Meta, and Apple, which will be released this week. Today, traders had a chance to take a look at Dallas Fed Manufacturing Index report for October. The report indicated that Dallas Fed Manufacturing Index improved from -8.7 to -5.0, compared to analyst forecast of -2. The rally was broad, and most market sectors moved higher in today’s trading session. Basic materials stocks found themselves under pressure as traders reacted to the strong sell-off in precious metals markets. Consumer defensive stocks have also moved lower as demand for safe-haven assets declined.

SP500 settled above the 6800 level and is moving towards the 6900 level. In case SP500 climbs above 6900, it will head towards the psychologically important 7000 level.

NASDAQ

NASDAQ rallied as traders focused on recent improvements in U.S. – China relations. Qualcomm, which was up by 12.2%, was the best performer in the NASDAQ index today. The stock rallied as Qualcomm announced AI chips that would compete with NVIDIA and AMD.

Traders should note that RSI has recently moved into overbought territory, so the risks of a pullback are increasing.

Dow Jones

Dow Jones gained some ground amid broad rally in the equity markets. However, the index failed to gain strong momentum as demand for consumer stocks declined.

The nearest resistance level for Dow Jones is located in the 47,500 – 47,600 range. A move above the 47,600 level will push Dow Jones towars the 48,000 level.

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