NASDAQ Index, SP500, Dow Jones Forecasts – Stocks Gain Ground Ahead Of The Weekend

Key Insights

• SP500 moves higher as PCE Price Index drops to 2.6%. 
• NASDAQ gains ground as demand for tech stocks remains high ahead of Christmas. 
• Dow Jones is stuck below 37,500 as Nike is down by 11% after earnings report.

SP500

SP500 gains ground as traders react to PCE Price Index report, which showed that PCE Price Index decreased from 2.9% in October to 2.6% in November.  The report indicated that inflation is slowing down, which means that Fed may start cutting rates in the first half of 2024. Traders also had a chance to take a look at the final reading of Michigan Consumer Sentiment report, which showed that Consumer Sentiment improved from 61.3 in November to 69.7 in December. New Home Sales declined by 12.2% month-over-month in November. Personal Income increased by 0.4% month-over-month in November, while Personal Spending grew by 0.2%. Today’s move is broad, and the majority of market segments are moving higher. Fed policy outlook remains the key driver for equity markets, so any data that boosts the probability of rate cuts provides additional support to stocks.

From the technical point of view, SP500 continues its attempts to settle above the resistance at 4730 – 4750. RSI is in the moderate territory, so there is enough room to gain additional upside momentum.

NASDAQ

NASDAQ moved closer to recent highs as traders reacted to economic data. Demand for chip stocks stays strong, which is bullish for the tech-heavy NASDAQ.

From the technical point of view, NASDAQ is trying to settle above the resistance at 16,800. A successful test of this level will provide NASDAQ with an opportunity to gain additional upside momentum.

Dow Jones

Dow Jones is mostly flat today due to the strong sell-off in Nike stock. Nike is down by 11% as traders react to the disappointing earnings report. The company presented weak outlook and announced that it would cut $2 billion in costs.

Dow Jones faced resistance near the 37,500 level, and it remains to be seen whether it will be able to gain momentum ahead of the weekend.

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