NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Rebounds Amid Rising Risk Appetite

Key Insights

• SP500 gained ground as traders focused on the diplomatic efforts in the Middle East. 
• NASDAQ rebounds as demand for tech stocks rises ahead of earnings from Microsoft and Alphabet. 
• Dow Jones did not manage to gain upside momentum as Chevron found itself under strong pressure after making a deal with Hess. 

SP500

SP500 rebounds as traders focus on the pullback in Treasury yields. In addition, recent reports indicate that Hamas released two female hostages. Some traders are ready to bet that diplomatic efforts from various countries would limit the scope of Israel – Hamas conflict, which will be bullish for markets. The strong pullback in the oil markets provided additional support to SP500. High energy prices lead to higher inflation, so a pullback in the oil markets provides Fed with a chance to be less hawkish at the upcoming meeting. Not surprisingly, oil-related stocks are under pressure, but other market segments are moving higher in today’s trading session.

The nearest resistance level for SP500 is located in the 4260 – 4280 range. In case SP500 climbs above 4280, it will move towards the resistance at 4335 – 4350.

NASDAQ

NASDAQ gained ground amid rising demand for tech stocks. Tomorrow, traders will have a chance to take a look at the earnings reports from Microsoft and Alphabet. Both stocks are up by about 1.5% as investors bet that reports will beat analyst expectations.

If NASDAQ stays above the 14,680 level, it will have a good chance to gain upside momentum and move towards the resistance at 15,200 – 15,300.

Dow Jones

Dow Jones did not manage to gain upside momentum in today’s trading session. Chevron is the biggest loser in the Dow Jones index. The stock is down by 3.5% as the company is buying Hess for $53 billion. The dynamics of the oil markets put additional pressure on Chevron.

From the technical point of view, Dow Jones remains stuck near the strong support level at 33,000 – 33,100. RSI has recently moved back into the moderate territory, so there is enough 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.