NASDAQ Index, SP500, Dow Jones Forecasts – Stocks Move Higher As PCE Data Shows Inflation Remains Under Control

SP500

SP500 is moving higher as traders react to PCE data. PCE Price Index increased from 2.7% in August to 2.8%, compared to analyst forecast of 2.8%. Core PCE Price Index declined from 2.9% to 2.8%, in line with analyst estimates. The reports indicated that inflation remained under control in September. Today, traders also had a chance to take a look at Michigan Consumer Sentiment report for December. The report showed that Consumer Sentiment improved from 51.0 in November to 53.3 in December, compared to analyst forecast of 52. Personal Income increased by +0.4% month-over-month in September, exceeding the analyst consensus of +0.3%. Personal Spending grew by +0.3%, in line with analyst expectations. From a big picture point of view, traders have already started to prepare for Fed decision, which will be released next week. Traders believe that Fed will cut rates as inflation remains under control.

Currently, SP500 is trying to settle above the resistance at 6870 – 6880. In case this attempt is successful, SP500 will move towards the 6930 level. A move above the 6930 level will open the way to the test of the psychologically important 7000 level.

NASDAQ

NASDAQ is moving higher, supported by rising demand for tech stocks. Micron and Intel are among the biggest gainers in the NASDAQ index today. Strategy found itself under pressure as traders focused on the pullback in crypto markets.

NASDAQ continues its attempts to settle above the resistance at 25,750 – 25,800. In case NASDAQ settles above the 25,800 level, it will head towards the next resistance level, which is located in the 26,250 – 26,300 range.

Dow Jones

Dow Jones managed to gain some ground amid rising demand for financial and consumer cyclical stocks. RSI remains in the moderate territory, so there is plenty of room to gain additional upside momentum in case the right catalysts emerge.

A successful test of the resistance level at 47,900 – 48,000 will open the way to the test of the 48,400 level.

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