NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Tests Historic Highs As Cisco Soars 13%

SP500 Tests Resistance At 7490 – 7500

SP500 tests new highs as traders react to the Retail Sales report. The report indicated that Retail Sales increased by +0.5% month-over-month in April, in line with analyst consensus. Retail Sales Ex Autos grew by +0.7%, compared to analyst forecast of +0.6%.

Initial Jobless Claims report showed that 211,000 Americans filed for unemployment benefits in a week, compared to analyst consensus of 205,000. The previous report was revised from 200,000 to 199,000. The report showed that the job market remained in decent shape despite high oil prices.

Today, traders also had a chance to take a look at the Import & Export prices data. Import Prices increased by +1.9% month-over-month in April, compared to analyst forecast of +1.0%. Export Prices grew by +3.3%, exceeding the analyst consensus of +1.1%.

Trump – Xi summit in China provided additional support to stocks in today’s trading session. President Trump said that China wants to help negotiate the end of the war in the Middle East. According to recent reports, Xi warned Trump that U.S. military help to Taiwan may push the countries towards a direct conflict. From a big picture point of view, the market is not worried about China’s rhetoric on Taiwan and is focused on the potential deals between U.S. and China.

Tech stocks were among the leaders in today’s trading session as traders rushed to buy AI-related stocks. Energy stocks have also gained ground as traders focused on rising natural gas markets. Basic materials stocks found themselves under pressure amid pullback in precious metals markets.

SP500 settled above the previous resistance at 7425 – 7435 and is trying to settle above the resistance level at 7490 – 7500. In case this attempt is successful, SP500 will head towards the 7550 level. RSI has recently moved into the overbought territory, but there is enough room to gain additional upside momentum in case the right catalysts emerge.

NASDAQ Tests New Highs As Traders Rush To Buy AI-Related Stocks

NASDAQ tested historic highs amid strong demand for AI-related stocks. Cisco, which gained 13%, was the biggest gainer in the NASDAQ index today. The stock rallied as Cisco beat analyst estimates and raised its revenue forecast.

The company announced that it would cut thousands of jobs to focus on the  AI market. Cisco’s report showed that demand from data centers was growing due to AI. It’s worth noting that Cisco shares have finally managed to get above highs reached back in 2000 during the dotcom era.

Currently, NASDAQ is trying to settle above the resistance at 29,700 – 29,750. In case this attempt is successful, NASDAQ will head towards the psychologically important 30,000 level.

Dow Jones Attempts To Settle Above 50,000

Dow Jones gained ground, supported by the strong rally in Cisco stock. NVIDIA, which was up by 4.5%, was also among the biggest gainers in the Dow Jones index today. The stock rallied as traders rushed to buy shares of AI-related companies.

From the technical point of view, Dow Jones attempts to settle above the 50,000 level. If Dow Jones stays above 50,000, it will head towards the nearest resistance level, which is located in the 50,400 – 50,500 range. RSI is in the moderate territory, so there is plenty of room to gain momentum in the near term.

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