NASDAQ Index, SP500, Dow Jones Forecasts – Stocks Gain Ground As Traders Bet On Dovish Fed After Powell’s Speech

SP500

SP500 gained ground as traders focused on Powell’s dovish remarks. Fed Chair Powell highlighted concerns about the weakness of the labor market, so traders rushed to bet on dovish Fed. In addition, Powell signaled that quantitative tightening could end soon, which was bullish for equity markets. Most market sectors moved higher in today’s trading session. Tech stocks found themselves under pressure as traders remained worried about rising tensions in U.S. – China relations.

SP500 managed to settle back above the support at 6610 – 6620 and is moving towards the resistance, which is located in the 6700 – 6710 range. A move above the 6710 level will open the way to the test of the next resistance at 6760 – 6770.

NASDAQ

NASDAQ rebounded from session lows, supported by Powell’s dovish comments. NVIDIA, which was down by 3.5%, was the worst performer in the NASDAQ index today. Traders worry that U.S. – China relations will get worse, hurting NVIDIA’s sales in China.

Currently, NASDAQ is trying to settle above the resistance at 24,750 – 24,800. In case this attempt is successful, NASDAQ will head towards the 50 MA at 24,897. A move above the 50 MA will push NASDAQ towards the next resistance level at 25,150 – 25,200.

Dow Jones

Dow Jones gained ground amid rising demand for consumer defensive and industrials stocks. Walmart, which was up by 4.6%, was the biggest gainer in the Dow Jones index today. The stock rallied as the company announced a partnership with OpenAI.

If Dow Jones manages to settle above the 50 MA at 46,420, it will head towards the resistance level at 46,900 – 47,000. RSI remains in the moderate territory, so there is plenty of room to gain momentum in case the right catalysts emerge.

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