NASDAQ Index, SP500, Dow Jones Forecasts – SP500 Tests Historic Highs After Fed Decision

SP500

SP500 tests historic highs as traders react to the Fed Interest Rate Decision. The Fed decided to leave the federal funds rate unchanged at 5.25% – 5.50%. Traders also focused on the updated Economic Projections. Importantly, the federal funds rate projection for 2024 was left at 4.6%, which is bullish for stocks. In addition, GDP growth forecast for 2024 was changed from 1.4% to 2.1%. This is a significant improvement that highlights the strength of the U.S. economy. Put simply, there are no signs of a recession, and the U.S. economy continues to grow at a decent pace. The GDP growth forecast for 2025 was also changed from 1.8% to 2.0%, so the Fed expects that the economy will stay strong in the next year.

In case SP500 manages to stay above the psychologically important 5200 level, it will gain additional upside momentum. RSI remains in the moderate territory, so there is plenty of room to gain momentum in case the right catalysts emerge.

NASDAQ

NASDAQ is moving higher, supported by the encouraging changes in Fed’s economic projections. It should be noted that NASDAQ would be sensitive to Powell’s comments during the press conference, which starts soon.

If NASDAQ settles above the resistance at 18,000 – 18,050, it will head towards the next resistance at 18,350 – 18,400.

Dow Jones

Dow Jones gains ground as traders stay bullish after the release of the Fed decision. Boeing, which is up by 2.4%, is the best performer in the Dow Jones Index today. The stock rebounds from multi-month lows as traders bet that the company would be able to solve its current problems.

A move above the nearest resistance level, which is located in the 39,250 – 39,300 range, will open the way to the test of historic highs for Dow Jones.

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