NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Tests New Highs As Micron Gains 4%

SP500 Tests Resistance At 7540 – 7550

SP500 gains ground, supported by the strong pullback in the oil markets. WTI oil pulled back below the $72.00 level as traders bet that fighting between U.S. and Iran won’t last long.

Treasury yields moved lower as bond traders reacted to the sell-off in the oil markets. The yield of 2-year Treasuries declined towards the 4.16% level, while the yield of 10-year Treasuries pulled back towards 4.55%. Falling Treasury yields provided additional support to SP500.

Today, traders also had a chance to take a look at the Initial Jobless Claims report. The report indicated that 215,000 Americans filed to unemployment benefits in a week, compared to analyst forecast of 218,000. From a big picture point of view, the report showed that the U.S. job market remained in decent shape.

The Existing Home Sales report indicated that Existing Home Sales decreased by -2.4%, compared to analyst forecast of +0.7%.

Tech stocks were among the biggest gainers in the SP500 index today. Basic materials stocks have also gained strong upside momentum as traders reacted to the rebound in the oil markets.

Consumer defensive stocks pulled back as demand for safe-haven assets declined. Energy stocks have also moved lower as traders focused on the sell-off in the oil markets.

Currently, SP500 is trying to settle above the resistance level at 7540 – 7550 range. In case SP500 manages to settle above the 7550 level, it will move towards the next resistance level, which is located at historic highs in the 7615 – 7625 range.

On the support side, a move below the 50 MA at 7500 will open the way to the test of the support level at 7450 – 7460.

NASDAQ Gains Ground Amid Rising Demand For AI-Related Stocks

NASDAQ is moving higher, supported by strong demand for tech stocks. Micron, which was up by 4%, was among the notable gainers today. The stock rallied as the company revealed that it would raise its planned U.S. investment to more than $250 billion through 2035. Micron noted that rising demand for AI memory products was the key reason to boost investment.

NASDAQ settled above the 50 MA at 29,643 and is trying to settle above the resistance level at 29,800 – 29,850. In case this attempt is successful, NASDAQ will head towards the next resistance level, which is located in the 30,350 – 30,400 range.

Dow Jones Remains Stuck Near The 50 MA

Dow Jones continued its attempts to settle above the 50 MA at 52,540 amid broad rally in the equity markets. Cisco, which was up by +3.9%, was the biggest gainer in the Dow Jones index today. The company’s shares rallied amid rising demand for tech stocks.

In case Dow Jones manages to settle above the 50 MA at 52,540, it will head towards the nearest resistance level, which is located in the 52,700 – 52,800 range. A move above the 52,800 level will push Dow Jones towards historic highs near the 53,300 level.

On the support side, a successful test of the support at 52,100 – 52,200 will open the way to the test of the next support at 51,600 – 51,700.

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