NASDAQ Index, SP500, Dow Jones Forecasts – Stocks Gain Ground As Oil Prices Pull Back From Highs
- SP500 moved above the 4300 level as traders reacted to GDP Growth Rate report.
- NASDAQ gains as tech stock demand increases after an 8% pullback from yearly highs.
- Dow Jones rises amid a broad rebound in the equity markets.
SP500 gained ground as the rebound continued. Today, traders focused on the GDP Growth Rate report, which showed that GDP Growth Rate increased from 2% in the first quarter to 2.1% in the second quarter. Initial Jobless Claims report showed that 204,000 Americans filed for unemployment benefits in a week, highlighting the strength of the job market. Treasury yields have started to move away from their recent highs as bond traders tooks some profits off the table after the strong move. The pullback in Treasury yields provided support to SP500. In addition, oil markets moved lower, which was bullish for major indices. Rising energy prices are bearish for stocks as Fed will be forced to be more hawkish to fight inflation.
From the technical point of view, SP500 managed to climb above the 4300 level and is moving towards the nearest resistance, which is located in the 4335 – 4350 range.
NASDAQ gained ground as demand for tech stocks increased. NASDAQ index is down by 8% from the yearly highs that were reached back in July, so some traders are ready to use the pullback as an opportunity to increase their long positions at attractive levels.
If NASDAQ settles above the 14,680 level, it will gain additional upside momentum and move towards the 50 MA at 14,835. A move above the 50 MA will push NASDAQ towards the 15,000 level.
Dow Jones is moving higher amid a broad rebound in the equity markets. Dow Jones was oversold, and a technical rebound was just a matter of time.
If Dow Jones stays above the 33,700 level, it will move towards the 50 MA at 34,085. RSI has just moved out of the oversold territory, so there is plenty of room to gain upside momentum in case the right catalysts emerge.
For a look at all of today’s economic events, check out our economic calendar.