NASDAQ Index, SP500, Dow Jones Forecasts – SP500 Is Stuck Near The Key 5000 Level

Key Insights

• SP500 is stuck below the 5000 level as traders take some profits off the table. 
• NASDAQ tested new highs as demand for semiconductor stocks remained strong. 
• Dow Jones moved away from session lows, supported by the strong rally in Disney stock.

SP500

SP500 settled near the 5000 level as some traders decided to take profits off the table near historic highs. Today, traders had a chance to take a look at the Initial Jobless Claims report, which indicated that 218,000 Americans filed for unemployment benefits of the week. Analysts expected Initial Jobless Claims of 220,000, so the report was mostly in line with analyst estimates. Paypal, which is down by 11%, was the biggest loser in SP500 today. The company beat analyst expectations on both earnings and revenue but presented weak guidance. Treasury yields moved higher as bond traders bet on a more hawkish Fed, but this move did not put material pressure on SP500.

SP500 needs to settle above the psychologically important 5000 level to continue the rally. If SP500 moves below 4980, it will get to the test of the nearest support at 4960 – 4970.

NASDAQ

NASDAQ tested new highs as the rally continued. Demand for tech stocks remains strong, which is bullish for the tech-heavy NASDAQ index. Traders continue to buy semiconductor stocks as they bet that AI revolution would boost demand for chips.

RSI is close to the overbought territory, but there is plenty of room to gain additional upside momentum in case the right catalysts emerge.

Dow Jones

Dow Jones rebounded from session lows and moved back above the 38,650 level. Disney, which is up by 12.5%, is the best performer in the Dow Jones index today. The stock gained upside momentum as the company beat analyst estimates and raised the dividend. An analyst upgrade from Needham provided additional support to Disney stock.

From the technical point of view, Dow Jones remains stuck below the recent highs. A move above the 38,800 level will provide Dow Jones with a chance to gain additional upside momentum.

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