NASDAQ Index, SP500, Dow Jones Forecasts – Stocks Move Higher As Traders Prepare For Inflation Data

Key Insights

• SP500 moved towards the 4780 level as traders bet on a dovish Fed. 
• NASDAQ gained ground, supported by the strong performance of AI-related stocks. 
• Dow Jones climbed above the 37,600 level. 

SP500

SP500 is moving higher as traders wait for tomorrow’s CPI reports. Analysts expect that Inflation Rate increased from 3.1% in November to 3.2% in December. Core Inflation Rate is projected to decline from 4% to 3.8%. Traders remain optimistic and expect that Fed will start cutting rates in March. Treasury yields are moving higher but this move does not put any pressure on major indices today. Most market segments enjoyed solid support, but Energy stocks found themselves under pressure as traders reacted to the bearish EIA report.

From the technical point of view, SP500 is moving towards recent highs near the 4800 level. A move above this level will open the way to the test of the resistance at 4810 – 4820.

NASDAQ

NASDAQ tests resistance at 16,750 – 16,800 amid rising demand for tech stocks. Traders remain focused on AI-related companies. NVIDIA and Microsoft are among the biggest gainers in the NASDAQ index today.

A successful test of the resistance at 16,750 – 16,800 will push NASDAQ towards the next resistance level, which is located in the 16,950 – 17,000 range.

Dow Jones

Dow Jones gained some ground, supported by the strong performance of Home Depot and Microsoft stocks. From a big picture point of view, Dow Jones needs additional catalysts to gain momentum.

Dow Jones continues its attempts to settle above the 37,500 level. In case tomorrow’s reports show that inflation is under control, Dow Jones will have a decent chance to move towards the 38,000 level.

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