NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Tests New Highs As Micron Gains 7.8%

SP500 Tests Resistance At 6960 – 6970

SP500 tests new highs as traders react to the Producer Prices report and focus on geopolitical developments.

PPI increased by +0.5% month-over-month in March, compared to analyst forecast of +1.1%. Core PPI grew by +0.1%, while analysts expected that it would increase by +0.5%.

The surprising Producer Prices data showed that inflation impact from high energy prices could be lower than previously expected. In theory, it could provide Fed with an opportunity to cut rates, which is bullish for stocks. That said, it’s too early to bet that inflation will cool down soon as physical oil market remains extremely tight.

WTI oil pulled back below the $62.00 level as traders bet that U.S. and Iran could reach a deal soon. The second round of negotiations is expected to take place in Islamabad. Iran did not respond to the naval blockade from the U.S., and many analysts believe that the country is ready for a deal.

Falling oil prices provided significant support to stocks. Most market sectors moved higher in today’s trading session as the appetite for risk increased. Energy stocks found themselves under pressure as traders reacted to the strong sell-off in oil markets.

SP500 settled above the previous resistance level at 6910 – 6920 and is trying to settle above the resistance at 6960 – 6970. In case this attempt is successful, SP500 will move towards the next resistance, which is located in the 7010 – 7020 range. RSI is in the overbought territory, so the risks of a pullback are increasing. It should be noted that short-covering may have served as an important catalyst that triggered the strong rally.

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

NASDAQ tests new highs as traders rush to buy tech stocks. Micron, which is up by 7.8%, is the biggest gainer in the NASDAQ index today. The stock gained strong upside momentum amid strong demand for AI-related stocks.

From a big picture point of view, traders are afraid to miss the next leg of the AI rally. Traders shrug off worries about high AI spending and ignore geopolitical risks, focusing on the disruptive potential of the AI technology.

Currently, NASDAQ is trying to settle above the resistance level at 25,750 – 25,800. If NASDAQ manages to settle above the 25,800 level, it will move towards the resistance at 26,200 – 26,250.

On the support side, a move below the 25,600 level will push NASDAQ towards the nearest support, which is located in the 25,150 – 25,200 range.

Dow Jones Moves Higher On Hopes For Iran Peace Deal

Dow Jones gains ground amid broad rally in the equity markets. Amazon and NVIDIA  are the biggest gainers in the Dow Jones index today.

Chevron was the only notable loser in the index. The stock declined by 2.6% as traders reacted to the major sell-off in oil markets.

From the technical point of view, Dow Jones climbed above the resistance at 48,200 – 48,300 and is trying to settle above the 48,500 level. In case Dow Jones stays above 48,500, it will move towards the next resistance at 49,000 – 49,100. RSI has recently moved into overbought territory, but there is enough room to gain additional upside momentum in case the right catalysts emerge.

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