NASDAQ Index, SP500, Dow Jones Forecasts – Stocks Gain Ground As Microsoft Tests New Highs
- SP500 moved towards the 4550 level as traders ignored recession risks and focused on rising demand for tech stocks.
- NASDAQ climbed above the 16,000 level as Microsoft moved to new highs.
- Dow Jones managed to settle above the 35,100 level as Boeing stock rallied after an upgrade from Deutsche Bank.
SP500 tests new highs amid rising demand for tech stocks. Microsoft is up by 2.3% after the company hired Open AI’s Sam Altman. Previously, Altman was fired by OpenAI, the developer of the famous ChatGPT. Today, traders also focused on CB Leading Index report, which showed that CB Leading Index decreased by 0.8% month-over-month in October. The Conference Board believes that a combination of high interest rates, elevated inflation and weak consumer spending would push U.S. economy into a very short recession. However, traders are not worried about recession. They focus on the possibilities in the AI space and the recent shift in Fed policy outlook. The Fed is expected to start cutting rates in the first half of the next year, which will be bullish for stocks.
From the technical point of view, SP500 settled above the 4500 level and is heading towards the nearest resistance, which is located in the 4575 – 4600 range.
NASDAQ moved above the 16,000 level as traders focused on strong demand for tech stocks. AI buzz served as the key positive catalyst for NASDAQ this year and may also serve as the key driver for Santa Rally.
In case NASDAQ stays above the previous resistance at 15,800 – 15,900, it will head towards the next resistance level at 16,400 – 16,500.
RSI is close to the overbought territory, but there is enough room to gain additional momentum and move towards the next resistance level at 35,550 – 35,700.
For a look at all of today’s economic events, check out our economic calendar.