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NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Tests Historic Highs Amid Strong Demand For Chip Stocks

By:
Vladimir Zernov
Updated: Jul 10, 2024, 22:19 GMT+00:00

Key Points:

  • SP500 climbed above the 5600 level and tested new highs.
  • NASDAQ rallied as traders remained focused on AI-related stocks.
  • Dow Jones moved above the 39,500 level.
NASDAQ Index, SP500, Dow Jones Forecasts

In this article:

SP500

SP500
SP500 100724 4h Chart

SP500 tests new highs as traders keep buying tech stocks ahead of tomorrow’s inflation reports. Analysts expect that Inflation Rate declined from 3.3% in May to 3.1% in June. Core Inflation Rate is expected to remain unchanged at 3.4%. Treasury yields are moving lower today, providing additional support to SP500. It should be noted that the rally is broad, and all market segments are moving higher in today’s trading session.

The technical picture remains extremely bullish as SP500 managed to settle above the resistance at 5590 – 5600 and tests new highs. RSI is in the overbought territory, which is typical for a strong rally. However, traders should note that the risks of a pullback are increasing as SP500 is overbought.

NASDAQ

NASDAQ
NASDAQ 100724 4h Chart

NASDAQ rallies amid strong demand for tech stocks. Micron, Advanced Micro Devices, and NVIDIA are among the biggest gainers in the NASDAQ index today.

NASDAQ climbed above the resistance at 20,500 – 20,600 and is moving higher. In case NASDAQ settles above the 20,700 level, it will continue to move towards the 21,000 level.

Dow Jones

Dow Jones
Dow Jones 100724 4h Chart

Dow Jones gained ground amid broad rally in the equity markets. It should be noted that there are no big gainers in the Dow Jones index today. Honeywell, which is up by 1.6%, is the best-performing stock in the index. From a big picture point of view, Dow Jones underperforms as traders are focused on AI-related stocks.

Dow Jones has recently managed to settle above the 50 MA at 39,296. Currently, the index is trying to settle above the 39,500 level. In case this attempt is successful, Dow Jones will move towards the nearest resistance, which is located in the 39,700 – 39,800 range. A move above the 39,800 level will provide Dow Jones with an opportunity to gain additional upside momentum.

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

About the Author

Vladimir is an independent trader and analyst with over 10 years of experience in the financial markets. He is a specialist in stocks, futures, Forex, indices, and commodities areas using long-term positional trading and swing trading.

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