NASDAQ Index, SP500, Dow Jones Forecasts – Stocks Gain Ground As Traders React To FOMC Minutes

SP500

SP500 is moving higher as traders react to FOMC Minutes. The Minutes showed that Fed members were worried that increased tariffs would put upward pressure on prices. Several members have also noted that elevated short-term inflation expectations could spill over into longer-term inflation expectations. According to the Minutes, “most participants assessed that some reduction in the target range for the federal funds rate this year would likely be appropriate”. A couple of participants were ready to discuss a potential rate cut at the meeting in July. Overall, the Minutes showed that Fed members remained focused on the impact of tariffs but were ready to consider additional rate cuts.  Most market sectors moved higher in today’s trading session. However, energy and consumer defensive stocks have found themselves under pressure.

In case SP500 stays above the 6250 level, it will get to the test of the nearest resistance level at 6280 – 6290. RSI is in the moderate territory, and there is plenty of room to gain momentum in case the right catalysts emerge.

NASDAQ

NASDAQ has also moved higher as demand for tech stocks remained strong. Strategy, which was up by 2.2%, was among the biggest gainers in the NASDAQ index today.

A successful test of the resistance at 22,850 – 22,900 will push NASDAQ above the 23,000 level.

Dow Jones

Dow Jones gained ground as Boeing rallied 3.8%. The stock gained upside momentum as company’s second-quarter deliveries exceeded analyst estimates.  Traders bet that Boeing managed to fix its problems and that its second-quarter earnings report would also beat estimates.

The nearest resistance level for Dow Jones is located in the 44,600 – 44,700 range. If Dow Jones manages to settle above the 44,700 level, it will head towards the next resistance level at 45,000 – 45,100.

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