NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Tests Historic Highs As Arm Holdings Soars 16%

SP500 Moves Higher As Traders Buy Tech Stocks

SP500 tests new highs as traders focus on developments in the Middle East and react to the ISM Manufacturing PMI report. The report indicated that ISM Manufacturing PMI increased from 52.7 in April to 54.0 in May, compared to analyst forecast of 53. Numbers above 50 show expansion.

WTI oil rallied above the $92.00 level as traders reacted to the reports, which indicated that Iran halted negotiations due to Israel’s operation against Hezbollah.

President Trump said that negotiations continued. He added that Israel and Hezbollah agreed to stop attacking each other. Oil markets moved away from session highs but were up by as much as 5% as traders waited for confirmation from all sides of the conflict.

Treasury yields gained ground as bond traders reacted to news from the Middle East and focused on rising oil prices. The yield of 2-year Treasuries climbed above the 4.05% level, while the yield of 10-year Treasuries settled near 4.48%.

It should be noted that most market sectors were moving lower in today’s trading session. Utilities stocks were among the biggest losers as traders focused on rising Treasury yields.

Energy stocks moved higher, supported by the rally in the oil markets. Tech stocks gained strong upside momentum as traders remained focused on the transformative potential of the AI technology.

SP500 climbed above the resisistance at 7590 – 7600 and is trying to settle above the 7620 level. In case this attempt is successful, SP500 will head towards the 7650 level. RSI remains in the moderate territory, so there is plenty of room to gain momentum in the near term.

NASDAQ Tests New Highs

NASDAQ tested historic highs amid strong demand for AI stocks. Arm Holdings, which is up by 16%, is the biggest gainer in the NASDAQ index today. The stock rallied as NVIDIA revealed that it would use Arm’s products for its PC chip.

Qualcomm and Intel stocks suffered sell-offs as traders worried about competition from NVIDIA.

From the technical point of view, NASDAQ moved above the resistance level at 30,300 – 30,350 and is trying to setlte above the 30,600 level. A move above 30,600 will push NASDAQ towards the 31,000 level.

On the support side, a move below the 30,300 level will push NASDAQ towards the 50 MA at 29,892. If NASDAQ declines below the 50 MA, it will head towards the support level at 29,700 – 29,750.

Dow Jones Is Flat As Salesforce Rallies 10%

Dow Jones is mostly flat as most stocks in the index are moving lower. Rising Treasury yields and higher oil prices put pressure on most sectors.

The strong rally in Salesforce, NVIDIA, and IBM stocks provided support to the Dow Jones index. Salesforce gained 10% as traders bet that the company would manage to successfully integrate AI products into its business.

Currently, Dow Jones is trying to settle above the resistance level at 51,000 – 51,100. In case this attempt is successful, Dow Jones will head towards the 51,500 level.

On the support side, a move below the 50,800 level will open the way to the test of the 50 MA at 50,611. If Dow Jones declines below the 50 MA, it will head towards the support at 50,400 – 50,500.

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