NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Tests New Highs As Rally Continues

SP500 Tests Resistance At 7590 – 7600

SP500 is mostly flat as traders wait for results of U.S. – Iran negotiations. President Trump has indicated that he could “make a final determination” soon.

In his post on social media, Trump reiterated demands regarding Iran’s nuclear program and free navigation in the Strait of Hormuz. Iranian media denied that U.S. and Iran discussed the nuclear program. As usual, both sides publish their own vision of negotiations, and it remains to be seen whether U.S. and Iran will be able to reach consensus in the near term.

That said, oil traders believe that U.S. and Iran are moving towards a successful deal. WTI oil pulled back below the $88.00 level, while Brent oil settled near the $91.00 level. Lower oil prices serve as a bullish catalyst for stocks as they reduce chances for aggressive rate hikes from the Fed.

Falling oil prices pushed Treasury yields lower as bond traders bet that inflationary pressure could ease. Lower Treasury yields provided some support to stocks today.

Today, traders also had a chance to take a look at the Wholesale Inventories report for April. The report indicated that Wholesale Inventories increased by +0.5% on a month-over-month basis, compared to analyst forecast of +0.6%. The report did not have a material impact on market dynamics as traders focused on geopolitical developments.

It should be noted that most market sectors moved lower in today’s trading session. Consumer defensive and real estate stocks were among the biggest losers today. Tech stocks gained ground amid strong demand for AI-related stocks.

Currently, SP500 is trying to settle above the resistance at 7590 – 7600. In case this attempt is successful, SP500 will head towards the 7650 level. RSI is in the moderate territory, so there is plenty of room to gain momentum in the near term.

NASDAQ Gains Ground Amid Strong Demand For Tech Stocks

NASDAQ tested new highs as traders remained bullish. Micron, which was up by 2.7%, tested historic highs as Susquehanna raised its price target for the stock from $600 to $1750. Analysts believe that AI-driven DRAM and NAND demand will boost the company’s earnings.

From the technical point of view, NASDAQ continues its attempts to settle above the resistance level at 30,300 – 30,350. If NASDAQ settles above 30,350, it will get to the test of the 30,500 level. A move above 30,500 will push NASDAQ towards the 31,000 level.

Dow Jones Moves Higher As IBM Gains 12%

Dow Jones gained ground as IBM soared 12%. Traders buy IBM shares as the company plans to invest $10 billion for large-scale quantum computer by 2029. Traders bet that quantum computers would be the next hot topic after AI.

Salesforce  gained 9% as traders bet on a rebound despite the recent earnings report, which revealed soft outlook.

Dow Jones attempts to settle above the resistance level at 51,000 – 51,100. A successful test of this level will push Dow Jones towards the 51,500 level.

On the support side, a move below 50,800 will open the way to the test of the nearest support level, which is located in the 50,400 – 50,500 range.

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