NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Tests Historic Highs On U.S. – Iran Ceasefire Progress

SP500 Tests Historic Highs As PCE Price Index Misses Estimates

SP500 tests new highs despite the disappointing GDP Growth Rate report. The report indicated that GDP Growth Rate was +1.6% in the first quarter, compared to analyst consensus of +2%. Traders bet that the potential slowdown of the U.S. economy will force the Fed to be less hawkish.

Treasury yields moved lower as bond traders reacted to GDP data. The yield of 2-year Treasuries declined towards the 4.02% level, while the yield of 10-year Treasuries pulled back towards 4.45%.

Today, traders also had a chance to take a look at PCE data. PCE Price Index increased by +0.4% month-over-month in April, compared to analyst forecast of +0.5%. Core PCE Price Index grew by +0.2%, compared to analyst consensus of +0.3%. Lower-than-expected inflation data provided additional support to SP500.

Personal Income was unchanged in April, while analysts expected that it would grow by +0.4%. Personal Spending increased by +0.5%, in line with analyst estimates.

Durable Goods Orders increased by +7.9% month-over-month in April, exceeding the analyst forecast of +3.5%. The Initial Jobless Claims report showed that 215,000 Americans filed for unemployment benefits is a week, compared to analyst consensus of 211,000.

Oil prices moved lower amid reports indicating that U.S. and Iran were ready to extend ceasefire by 60 days. At this point, President Trump has not approved the deal, but traders believe that U.S. and Iran may announce the deal soon.

WTI oil pulled back towards the $89.00 level, while Brent oil settled below $94.00 level as traders reacted to the reports.

Tech stocks were among the biggest gainers today as rally continued. Basic materials stocks moved higher as traders focused on the rebound in precious metals markets.

Utilities and consumer defensive stocks found themselves under pressure as demand for safe-haven assets declined.

SP500 settled above the resistance at 7515 – 7525 and moved above the 7550 level. In case SP500 stays above the 7550 level, it will head towards the 7600 level. RSI remains in the moderate territory, so there is plenty of room to gain momentum in case the right catalysts emerge.

NASDAQ Rallies As Traders Stay Bullish

NASDAQ tested historic highs amid strong demand for tech stocks. Software stocks were among the biggest gainers in the NASDAQ index today as some traders were ready to bet on the rebound of the beaten sector.

Currently, NASDAQ is trying to settle above the resistance at 30,300 – 30,350. In case this attempt is successful, NASDAQ will head towards 30,500 level. A move above 30,500 will open the way to the test of the 31,000 level.

Dow Jones Is Flat As Consumer Stocks Pull Back

Dow Jones  was mostly flat as consumer and healthcare stocks moved lower. Interestingly, the pullback in the oil markets did not provide support to the Dow Jones index.

Dow Jones failed to settle below the support at 50,400 – 50,500 and rebounded towards the 50,600 level. In case Dow Jones manages to settle above 50,600, it will head towards the nearest resistance level, which is located in the 51,000 – 51,100 range.

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