NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Rebounds From Session Lows As Traders Focus On U.S. – Iran Talks

SP500 Moves Higher As Traders Focus On Potential Progress In U.S. – Iran Talks

SP500 gained some ground as focused on the pullback in the oil markets and reacted to economic reports.

WTI oil has recently made an attempt to settle below the $96.00 level amid reports indicating that U.S. and Iran were moving towards a deal. However, oil has started tor rebound from session lows after Al Arabiya reported that Pakistani mediators would not visit Tehran tonight.

The nuclear issue remains the key obstacle for a deal. Iran wants to keep its uranium stockpile, while the U.S. wants Iran to hand it over. In addition, Iran and Oman are discussing a potential toll system in the Strait of Hormuz. President Trump has recently said that the Strait of Hormuz was an international waterway and should remain free.

Today, traders also focused on the PMI data. Manufacturing PMI increased from 54.5 in April to 55.3 in May, compared to analyst forecast of 53.8. Services PMI declined from 51.0 to 50.9, while analysts expected that it would remain unchanged at 51.0. Numbers above 50 show expansion, so the reports indicated that U.S. economy remained in decent shape.

The Initial Jobless Claims report showed that 209,000 Americans filed for unemployment benefits in a week, compared to analyst consensus of 210,000. Housing Starts declined by -2.8% month-over-month in April, compared to analyst consensus of -3.5%. Building Permits increased by +5.8%, exceeding the analyst estimate of +0.5%.

Most market sectors moved higher in today’s trading session. Basic materials stocks were among the biggest gainers as traders focused on rising silver markets. Energy stocks found themselves under pressure amid pullback in the oil markets.

SP500 continues its attempts to settle above the resistance level at 7425 – 7435. This resistance level has already been tested many times and proved its strength. In case SP500 settels above 7435, it will head towards the next resistance level at 7515 – 7525.

NASDAQ Is Mostly Flat As Traders React To NVIDIA’s Report

NASDAQ rebounded from session lows as traders focused on the pullback in the oil markets and reacted to NVIDIA‘s earnings.

NVIDIA is down by 1.7% despite the better-than-expected earnings report. Traders used the solid report as an opportunity to take profits near historic highs.

NASDAQ is trying to settle above the resistance level at 29,200 – 29,250. If NASDAQ manages to settle above 29,250, it will move towards the next resistance at 29,700 – 29,750. RSI is in the moderate territory, so there is plenty of room to gain momentum in the near term.

Dow Jones Tests New Highs

Dow Jones gains ground despite the strong sell-off in Walmart stock. Walmart is down by 6.7% as traders focus on the company’s earnings report. The company beat analyst expectations but issued a disappointing forecast. Walmart warned that high fuel costs may put pressure on margins.

From the technical point of view, Dow Jones settled above the psychologically important 50,000 level and is moving towards the resistance at 50,400 – 50,500. A successful test of this level will open the way to the test of the 51.000 level.

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