NASDAQ Index, SP500, Dow Jones Forecasts – Stocks Gain Ground As GDP Growth Rate Beats Estimates

SP500

SP500 tests historic highs as traders react to the better-than-expected GDP Growth Rate report. The report indicated that GDP Growth Rate was +3.3% in the second quarter, compared to analyst forecast of +3.1%. Today, traders also had a chance to take a look at the Initial Jobless Claims report. The report showed that 229,000 Americans filed for unemployment benefits in a week, mostly in line with analyst consensus of 230,000. Pending Home Sales decreased by -0.4% month-over-month in July, compared to analyst forecast of -0.1%. Tech and energy stocks were among the biggest gainers in the SP500 index today. Meanwhile, consumer defensive, healthcare, and real estate stocks moved lower as demand for safe-haven assets declined.

From the technical point of view, SP500 settled above the resistance at 6480 – 6490 and is trying to settle above the 6500 level. In case this attempt is successful, SP500 will head towards the 6550 level. RSI is close to the overbought territory, but there is enough room to gain momentum in the near term.

NASDAQ

NASDAQ is moving higher as NVIDIA managed to rebound from session lows. The stock found itself under pressure at the start of the trading session as traders reacted to the company’s earnings report. The report showed that AI growth may slow down, so traders used it as an excuse to take some profits off the table. From a big picture point of view, traders stay bullish on AI-related stocks, so NASDAQ enjoys strong support.

If NASDAQ settles above the 23,700 level, it will head towards the nearest resistance at 23,900 – 23,950.

Dow Jones

Dow Jones remains stuck below the resistance at 45,700 – 45,800. The pullback in healthcare stocks put some pressure on Dow Jones today.

The technical picture remains unchanged as Dow Jones needs to settle above the 45,800 level to gain additional upside momentum.

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