NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Tests Historic Highs As AMD Soars 18%

SP500 Tests Resistance At 7350 – 7360

SP500 tests historic highs as traders focus on the strong sell-off in the oil markets and bet that the war in the Middle East could end soon.

Recent reports showed that U.S. submitted a proposal to end the war, and Iran was evaluating it. According to the reports, the Strait of Hormuz would be gradually reopened, while U.S. will lift the blockade of Iranian ports, which puts significant economic pressure on the country.

The key question is whether Iran is ready to say goodbye to its nuclear ambitions, which were the key reason for the U.S. operation against the country. WTI oil pulled back towards the $95 level, while Brent oil made an attempt to settle below the $100 level as traders reacted to news from the Middle East. Falling oil prices provided significant support to SP500.

Today, traders also focused on the ADP Employment Change report. The report showed that private businesses added 109,000 jobs in April, compared to analyst forecast of 99,000. The report showed that the job market remained in decent shape despite rising energy prices.

Basic materials stocks were among the biggest gainers today as traders focused on the strong rally in precious metals markets. Energy stocks have found themselves under significant pressure as traders reacted to the sell-off in the oil markets. Utilities stocks have also moved lower as demand for safe-haven assets declined.

Currently, SP500 is trying to settle above the resistance level at 7350 – 7360. In case this attempt is successful, SP500 will head towards the 7400 level. Traders should note that RSI is in the overbought territory, so the risks of a pullback are increasing.

NASDAQ Soars As AMD Beats Analyst Expectations

NASDAQ tests new highs, supported by strong demand for tech stocks. Advanced Micro Devices, which is up by 18%, is the biggest gainer in the NASDAQ index today. The stock rallied as traders reacted to the company’s quarterly report.

The report beat analyst expectations and showed that demand for AI continued to grow at a robust pace. Analysts rushed to upgrade the stock after the release of the strong report, providing additional support to Advanced Micro Devices stock.

From the technical point of view, NASDAQ attempts to settle above the resistance at 28,500 – 28,550. If NASDAQ manages to settle above the 28,550 level, it will head towards the 29,000 level. NASDAQ is also overbought, but market sentiment remains extremely bullish.

Dow Jones Attempts To Settle Above The 50,000 Level

Dow Jones gained strong upside momentum amid broad rally in the equity markets. Disney, which was up by 7%, was the best performer in the Dow Jones index today. The stock rallied as traders focused on the strong earnings report.

Dow Jones climbed above the resistance at 49,700 – 49,800 and is trying to settle above the psychologically important 50,000 level. In case this attempt is successful, Dow Jones will move towards the 50,500 level. RSI remains in the moderate territory, so there is plenty of room to gain additional upside momentum in case the right catalysts emerge.

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