NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Tests Historic Highs As AMD Gains 3.9%

SP500

SP500 gains ground as traders ignore U.S. government shutdown and focus on Fed policy outlook. Traders believe that Fed will continue to cut rates due to the weakness of the labor market. U.S. President Donald Trump said that thousands of federal jobs could be cut, which will put additional pressure on the labor market. The Non Farm Payrolls report, which was scheduled to be released tomorrow, would likely be delayed due to government shutdown. Analysts expected that the U.S. economy added 50,000 jobs in September. Due to the blackout in government-issued economic reports, traders will focus on any economic data that would be available during the shutdown. Tomorrow, traders will focus on ISM Services PMI report, which is expected to show that ISM Services PMI declined from 52.0 in August to 51.7 in September.

SP500 managed to stay above the resistance at 6700 – 6710 and is moving higher. In case SP500 climbs above recent highs near the 6740 level, it will head towards the 6800 level.

NASDAQ

NASDAQ is moving higher amid rising demand for tech stocks. Advanced Micro Devices, which is up by 3.9%, is the biggest gainer in the NASDAQ index today.

From the technical point of view, NASDAQ settled above the resistance at 24,750 – 24,800 and is trying to settle above the 24,900 level. A move above 24,900 will push NASDAQ towards the psychologically important 25,000 level. RSI remains in the moderate territory, so there is plenty of room to gain momentum in the near term.

Dow Jones

Dow Jones is moving towards the nearest resistance level at 46,600 – 46,700. Strong demand for industrials stocks provides additional support to the Dow Jones index.

In case Dow Jones settles above the 46,700 level, it will gain additional upside momentum and move towards the 47,000 level.

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