NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Soars As Microsoft Skyrockets 17%

SP500 Rebounds As Traders Focus On Inflation Data

SP500 rallied as traders focused on PCE data. PCE Price Index declined by -0.1% month-over-month in June, in line with analyst expectations. Core PCE Price Index increased by +0.1%, while analysts expected that it would grow by +0.2%.

Treasury yields pulled back as traders focused on PCE report. The yield of 2-year Treasuries declined below the 4.25% level, while the yield of 10-year Treasuries settled near 4.66%.

It should be noted that the market expects that Fed will raise rates at the meeting in September. FedWatch Tool indicates that there is a 63.4% probability of a rate hike at the next meeting.

Today, traders also focused on the GDP Growth Rate report. The report indicated that GDP Growth Rate was +1.5% in the second quarter, compared to analyst consensus of +2.1%.

Personal Income increased by +0.2% month-over-month in June, compared to analyst forecast of +0.3%. Personal Spending grew by +0.3%, in line with analyst estimates.

Initial Jobless Claims report indicated that 197,000 Americans filed for unemployment benefits in a week, compared to analyst forecast of 200,000. The report showed that the job market remained in decent shape.

Tech stocks were among the biggest gainers today as traders rushed to buy AI-related names after the pullback. Consumer defensive and real estate stocks pulled back amid falling demand for safe-haven assets.

Currently, SP500 is trying to settle above the resistance level at 7450 – 7460. In case this attempt is successful, SP500 will move towards the next resistance, which is located in the 7510 – 7520 range. RSI remains in the moderate territory, so there is plenty of room to gain momentum in case the right catalysts emerge.

On the support side, a move below the 7400 level will open the way to the test of the support at 7370 – 7380. If SP500 declines below the 7370 level, it will head towards recent lows near the 7300 level.

NASDAQ Rallies As Traders Rush To Buy AI Stocks

NASDAQ rallied as Microsoft stock soared 17%. The company’s shares gained strong upside momentum as traders reacted to the encouraging earnings report. The report indicated that Microsoft’s cloud business was growing at the fastest pace since 2022 as customers used AI services.

NASDAQ climbed above the resistance at 27,850 – 27,900 and is trying to settle above the 28,100 level. In case this attempt is successful, NASDAQ will move towards the next resistance level, which is located in the 28,300 – 28,350 range.

Dow Jones Tests Resistance At 52,100 – 52,200

Dow Jones gained upside momentum amid broad rally in the equity markets. Microsoft was the biggest gainer in the Dow Jones index today. Amazon  gained +5.6% as traders prepared for the company’s earnings report, which would be released today after market close.

From the technical point of view, Dow Jones is trying to settle above the resistance level at 52,100 – 52,200. If Dow Jones manages to settle above the 52,200 level, it will head towards the next resistance level at 52,700 – 52,800.

On the support side, a move below 52,000 will push Dow Jones towards the support at 51,500 – 51,600.

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