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

SP500

SP500 is losing some ground as traders focus on inflation reports. Inflation Rate increased from 2.4% in May to 2.7% in June, in line with analyst expectations. Core Inflation Rate grew from 2.8% to 2.9%, compared to analyst consensus of 3.0%. While Core Inflation Rate missed analyst estimates, traders were worried about the inflationary impact of tariffs. Treasury yields moved higher as bond traders reduced bets on dovish Fed. Rising Treasury yields put additional pressure on stocks in today’s trading session. Today, traders also had a chance to take a look at NY Empire State Manufacturing Index report for July. The report showed that NY Empire State Manufacturing Index increased from -16.0 to +5.5, compared to analyst forecast of -9.

SP500 made an attempt to settle above the resistance at 6280 – 6290 but lost momentum and pulled back towards the 50 MA at 6255. If SP500 manages to settle below the 50 MA, it will head towards the nearest support level, which is located in the 6185 – 6195 range.

NASDAQ

NASDAQ gained ground amid strong demand for chip stocks. Advanced Micro Devices and NVIDIA were among the biggest gainers in the NASDAQ index today. The stocks rallied as U.S. allowed NVIDIA to resume sales of its H20 AI chip to China.

If NASDAQ climbs above the 23,000 level, it will head towards the 23,500 level. On the support side, a move below 22,850 will push NASDAQ towards the 50 MA at 22,781.

Dow Jones

Dow Jones is losing ground as traders worry about inflation data and Fed policy outlook. The pullback is broad, and most stocks in the Dow Jones index are losing ground in today’s trading session.

A successful test of the support level at 43,900 – 44,000 will open the way to the test of the next support at 43,200 – 43,300.

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