NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Tests Historic Highs As Apple Gains 6%

SP500

SP500 gains some ground ahead of Fed decision, which will be revealed tomorrow. There are no important economic reports scheduled to be released today, so traders are focused on Fed policy outlook. Tomorrow’s trading session would be volatile as traders will also take a look at inflation data for May. Inflation Rate is expected to remain unchanged at 3.4%, while Core Inflation Rate is projected to drop from 3.6% to 3.5%. Treasury yields are moving lower as bond traders prepare for the main event of the week. The yield of 2-year Treasuries pulled back below the 4.85% level, while the yield of 10-year Treasuries declined towards 4.40%. Falling Treasury yields provide additional support to SP500. Interestingly, most market segments are moving lower, but the strong performance of tech stocks pushes SP500 towards new highs.

Currently, SP500 is trying to settle above the 5370 level. In case this attempt is successful, SP500 will head towards 5400.

NASDAQ

NASDAQ tests historic highs as Apple  is up by 6%. The company announced a deal with OpenAI, which develops the popular chatbot ChatGPT. Apple’s AI features would be available in its iOS smartphone software, which could boost demand for iPhones.

The technical picture remains extremely bullish. RSI is in the moderate territory, and there is plenty of room to gain additional upside momentum.

Dow Jones

Dow Jones is losing ground despite Apple’s rally.  Most Dow Jones components are moving lower as traders reduce their risks ahead of Fed Interest Rate Decision.

From the technical point of view, Dow Jones found support in the 38,500 – 38,550 range and is trying to settle above the 50 MA at 38,674. In case this attempt is successful, Dow Jones will head towards the resistance at 39,000 – 39,100.

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