NASDAQ Index, SP500, Dow Jones Forecasts – Stocks Gain Ground On Rate-Cut Bets

SP500

SP500 gains ground as traders react to the weak ADP Employment Change report. The report indicated that private businesses cut -32,000 jobs in November, compared to analyst forecast of +10,000. The report highlighted the challenging situation in the job market and showed that the economy was slowing down. Today, traders also had a chance to take a look at the ISM Services PMI report. The report showed that ISM Services PMI increased from 52.4 in October to 52.6 in November, exceeding the analyst consensus of 52.1. Numbers above 50 show expansion. The services sector stays strong, although the market worries about general situation in the economy. Industrial Production grew by +0.1% month-over-month in September, compared to analyst consensus of 0.0%. This report did not have a material impact on market dynamics as traders focused on jobs data. Energy stocks were among the biggest gainers today as traders reacted to rising natural gas and oil markets. Utilities stocks pulled back as demand for safe-haven assets declined.

The nearest resistance level for SP500 is located in the 6870 – 6880 range. A move above 6880 will open the way to the test of the 6930 level.

NASDAQ

NASDAQ moved higher as traders bet on dovish Fed. Semiconductor stocks were among the biggest leaders in the NASDAQ index today as traders remained focused on rising AI demand.

In case NASDAQ manages to settle above the resistance at 25,750 – 25,800, it will head towards the next resistance at 26,250 – 26,300. RSI is close to the overbought territory, but there is enough room to gain momentum in the near term.

Dow Jones

Dow Jones tested new highs as traders focused on dovish Fed policy outlook after the release of weak job market data. Unitedhealth Group, which was up by 4.4%, was the biggest gainer in the Dow Jones index today.

A successful test of the resistance at 47,900 – 48,000 will push Dow Jones towards historic highs near the 48,400 level.

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