NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Rallies Despite AI Regulation Worries

SP500 Moves Above 7700 As Oil Prices Drop 9%

SP500 rallied as Democrats secured control of both the House and the Senate. Traders believe that Trump would not be able to start trade wars and would be forced to end the war in Iran after Democrats’ victory.

Vice President Vance has already said that the war in Iran was the reason why Republicans lost. Oil prices dived 9% as traders bet that Trump would not be able to restart the military operation against Iran after devastating election results for Republicans.

Treasury yields moved lower as traders focused on political developments and reacted to the major sell-off in the oil markets. The yield of 2-year Treasuries declined towards the 4.58% level, while the yield of 10-year Treasuries settled below 4.90%.

Traders also had a chance to take a look at the ISM Services PMI report for October. The report indicated that ISM Services PMI declined from 54.9 in September to 54.5 in October, compared to analyst forecast of 54.8. Numbers above 50 show expansion.

ADP Employment Change report showed that private businesses added 86,000 jobs in October, compared to analyst forecast of 69,000. The previous report was revised from 86,000 to 90,000.

I’d note that reports did not have a material impact on stock market dynamics as traders have mostly focused on results of midterm elections.

Consumer cyclical and consumer defensive stocks were among the biggest gainers in the SP500 index today. Energy stocks found themselves under strong pressure amid sell-off in the oil markets.

Currently, SP500 is trying to settle above the resistance level at 7690 – 7700. In case this attempt is successful, SP500 will head towards the next resistance level, which is located in the 7770 – 7780 range.

NASDAQ Gains Ground As Traders React To Elections’ Results

NASDAQ moved higher amid broad rally in the equity markets. However, some AI-related stocks remained under strong pressure. Traders bet that Democrats will slow down the development of AI data centers. CoreWeave, Sandisk, and Seagate were among the biggest losers in the NASDAQ index today.

The nearest resistance level for NASDAQ is located in the 28,850 – 28,900 range. In case NASDAQ manages to settle above the 28,900 level, it will head towards the next resistance, which is located in the 29,400 – 29,450 range. On the support side, a move below the 28,500 level will push NASDAQ towards the nearest support at 28,250 – 28,300.

Dow Jones Rallies As 3M Gains 10%

Dow Jones soared, supported by strong demand for consumer stocks. 3M, which was up by +10%, was the biggest gainer in the Dow Jones index today. I’d note that the rally was extremely broad. Only three stocks in the Dow Jones index found themselves under pressure in today’s trading session.

Dow Jones climbed above the resistance level at 52,800 – 52,900 and is trying to settle above the 53,300 level. In case this attempt is successful, Dow Jones will head towards the next resistance, which is located in the 53,600 – 53,700 range.

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