NASDAQ Index, SP500, Dow Jones Forecasts – SP500 Gains Ground As Moderna Soars 147%

SP500 Moves Higher As U.S. Treasury Boosts Buyback Of Long-Dated Bonds

SP500 gains ground as traders focus on U.S. Treasury’s decision to boost buyback of long-dated bonds and react to FOMC Minutes.

U.S. Treasury announced that it would increase the size of buybacks just two weeks after releasing schedule for this quarter. The move indicated that the Treasury was not happy with current yields. The Treasury noted that buyback operations would be increased by at least double.

The yield of 10-year Treasuries pulled back towards the 4.65% level, while the yield of 30-year Treasuries declined below 5.20% after the announcement.

FOMC Minutes showed that some Fed members believed that a rate hike was necessary. The Minutes also indicated that Fed Chair Warsh wanted to reduce the annual number of Fed policy meetings from eight to six.

Moderna, which was up by +147%, was the biggest gainer in the SP500 index today. The stock soared as the company’s cancer vaccine succeeded in Phase 3 trial.

Healthcare stocks were among the biggest gainers in the SP500 index today as traders focused on Moderna’s success. Basic materials stocks gained strong upside momentum as traders focused on the strong rally in precious metals markets, which was triggered by Treasury’s buyback announcement. Industrials and financial stocks pulled back in today’s trading session.

Currently, SP500 is trying to settle back above the support level at 7720 – 7730. In case this attempt is successful, SP500 will move towards the 50 MA at 7756. A move above the 50 MA will push SP500 towards the resistance level at 7790 – 7800.

On the support side, a move below the 7700 level will open the way to the test of the support at 7615 – 7625.

NASDAQ Gains Some Ground As Strategy Rallies 11.7%

NASDAQ is stuck near the support level at 29,450 – 29,500 as traders focus on bond market dynamics. Strategy, which is up by +11.7%, is the biggest gainer in the NASDAQ index today. The stock rallied as Bitcoin climbed above the $68,000 level.

If NASDAQ settles above the 29,500 level, it will head towards the nearest resistance at 29,850 – 29,900. On the support side, a move below the 29,450 level will push NASDAQ towards the support level at 29,100 – 29,200.

Dow Jones Moves Higher As Merck Gains 13%

Dow Jones gained ground as Merck rallied 13%. Merck developed the cancer vaccine together with Moderna. Salesforce  rallied 5.5% as the rebound continued. Traders bet that AI would not disrupt the company’s business.

If Dow Jones stays above the 53,400 level, it will head towards the 50 MA at 53,709. A move above the 50 MA will open the way to the test of the resistance level at 54,000 – 54,100.

On the support side, the nearest support level for Dow Jones is located in the 53,300 – 53,400 range. In case Dow Jones manages to settle below the 53,300 level, it will head towards the next support level at 52,800 – 52,900.

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