NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Tests Historic Highs As Intel Soars 13.5%

SP500 Tests Resistance At 7270 – 7280

SP500 tests historic highs as traders react to economic reports and focus on the situation in the Middle East.

U.S. confirmed that ceasefire remained in place despite Iran’s attacks on the United Arab Emirates. Oil markets pulled back by -3% as geopolitical risk premium declined, providing additional support to equities.

JOLTs Job Openings decreased from 6.922 million in February to 6.866 million in March, exceeding the analyst forecast of 6.84 million.

ISM Services PMI  pulled back from 54.0 in March to 53.6 in April, compared to analyst consensus of 53.7. Numbers above 50 show expansion. The report missed analyst estimates but showed that the services sector remained in decent shape.

Today, traders also had a chance to take a look at the New Home Sales report for March. The report indicated that New Home Sales increased by +7.4% on a month-over-month basis, compared to analyst forecast of +4.9%.

The rally was broad, and all market sectors moved higher in today’s trading session. Basic materials stocks were among the best performers as traders reacted to the rebound in precious metals markets. The tech sector has also gained strong momentum as traders bought AI-related stocks. Interestingly, energy stocks moved higher despite pullbacks in natural gas and oil markets.

Currently, SP500 is trying to settle above the resistance level at 7270 – 7280. In case this attempt is successful, SP500 will move towards the 7350 level. RSI remains in the moderate territory, so there is plenty of room to gain momentum in case the right catalysts emerge.

NASDAQ Soars As Traders Rush To Buy Tech Stocks

NASDAQ tested historic highs amid strong demand for tech stocks. Intel , which was up by 13.5%, was the biggest gainer in the NASDAQ index today. The stock rallied amid reports indicating that Apple explored using the company’s chips. Shares of Apple were up by 2.5%.

Advanced Micro Devices stock was up by 4.8% as traders prepared for the quarterly report, which will be released today after market close. AMD stock is trading near historic highs as traders rush to buy AI-related stocks.

From the technical point of view, NASDAQ settled above the previous resistance at 27,750 – 28,000 and is trying to settle above the 28,000 level. In case this attempt is successful, NASDAQ will head towards the 28,500 level. RSI has recently moved into overbought territory, but there is enough room to gain momentum in the near term.

Dow Jones Attempts To Settle Above The 50 MA At 49,221

Dow Jones gained ground amid broad rally in the equity markets. Caterpillar, which was up by 2.9%, was the best performer in the Dow Jones index today.

From a big picture point of view, falling oil prices provided support to most stocks in the Dow Jones index today.

Dow Jones settled back above the support at 49,000 – 49,100 and is trying to settle above the 50 MA at 49,221. In case Dow Jones manages to settle above this level, it will move towards the nearest resistance, which is located in the 49,700 – 49,800 range. A move above the 49,800 level will push Dow Jones towards the psychologically important 50,000 level.

In case Dow Jones pulls back below the support at 49,000 – 49,100, it will head towards the next support level at 48,700 – 48,800.

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