NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Tests Historic Highs As AMD Soars 25%

SP500

SP500 is moving higher, supported by strong performance of tech stocks. The sell-off in the European bond markets, which was triggered by political crisis in France, provided additional support to SP500 today. U.S. stocks enjoyed strong support despite U.S. government shutdown. At this point, traders do not worry about the shutdown and focus on strong demand for AI-related services. Real estate, consumer defensive, and healthcare stocks were among the losers today.

Currently, SP500 is trying to climb above the resistance level at 6760 – 6770. in case this attempt is successful, SP500 will move towards the 6800 level. RSI is in the moderate territory, and there is enough room to gain additional upside momentum in the near term.

NASDAQ

NASDAQ tests historic highs as traders react to the huge rally in Advanced Micro Devices stock. AMD is up by 25% as the company landed a major deal with OpenAI. Advanced Micro Devices will build AI-related infrastructure. It should be noted that AMD stock pulled back from session highs as traders used the rally to take some profits off the table.

NASDAQ attempts to settle above the resistance at 25,000 – 25,050. A move above the 25,050 level will push NASDAQ towards the 25,500 level.

Dow Jones

Dow Jones pulled back as demand for defensive sectors declined. Verizon, which was down by 4.8%, was the worst performer in the Dow Jones index today. The stock suffered a sell-off after the company announced that former PayPal CEO Dan Schulman will be its new CEO.

If Dow Jones settles below the 46,600 level, it will head towards the 50 MA at 46,361. A move below the 50 MA will open the way to the test of the support at 46,100 – 46,200.

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