NASDAQ Index, SP500, Dow Jones Forecasts – Stocks Rally Amid De-Escalation Hopes

SP500 Tests Resistance At 6870 – 6880

SP500 gains ground as traders react to geopolitical develoments and focus on encouraging economic data.

Recent reports indicated that Iran was willing to negotiate with the U.S. Most likely, the U.S. will demand a complete capitulation from Iran. However, Iranian officials denied these reports. It remains to be seen whether such reports were based on insider knowledge or they were part of psychological warfare, which is typical for military conflicts.

Anyway, the Strait of Hormuz remains de-facto closed. The U.S. said that it would ensure the safety of passage through the world’s key oil route, but it won’t be able to do this in the near term as Iran continues to fight back.

Oil prices moved away from session highs as traders bet on de-escalation. From a big picture point of view, such traders bet on Iran’s weakness. Stock traders have also taken this view and rushed to buy stocks after the recent pullback.

ISM Services PMI report showed that ISM Services PMI improved from 53.8 in January to 56.1 in February, compared to analyst forecast of 53.5. Numbers above 50 show expansion. According to the report, Business Activity, New Orders and New Export Orders indexes were at their highest levels since 2024.

ADP Employment Change report showed that private businesses added 63,000 jobs in February, compared to analyst consensus of 50,000. The better-than-expected job market report highlighted the strength of the U.S. economy.

Tech and consumer cyclical stocks were among the biggest gainers today. Energy stocks found themselves under pressure as traders reacted to pullbacks in natural gas and oil markets. Consumer defensive stocks have also moved lower as demand for safe-haven assets declined.

Currently, SP500 is trying to settle above the resistance at 6870 – 6880. In case this attempt is successful, SP500 will head towards the next resistance level, which is located in the 6940 – 6950 range.

NASDAQ Moves Higher Amid Rising Demand For Tech Stocks

NASDAQ rallied amid strong demand for tech stocks. Strategy, which was up by 11.5%, was the biggest gainer in the NASDAQ index today.

The shares of the Bitcoin-buying company rallied as Bitcoin climbed above the $73,000 level.

Micron, Intel, and Advanced Micro Devices were also among the biggest gainers in today’s trading session.

From the technical point of view, NASDAQ attempts to settle above the resistance at 25,200 – 25,250. If NASDAQ manages to settle above the 25,250 level, it will move towards the next resistance level at 25,800 – 25,850.

Dow Jones Rebounds As Amazon Gains 3.9%

Dow Jones moved higher amid broad rally in the equity markets. Amazon and NVIDIA were the biggest gainers in the Dow Jones index today.

It should be noted that falling demand for defensive sectors put some pressure on the Dow Jones index today.

Dow Jones is trying to settle above the nearest resistance, which is located in the 48,700 – 48,800 range. In case Dow Jones settles above the 48,750 level, it will get to the test of the 50 MA at 48,952. A move above the 50 MA will push Dow Jones towards the next resistance at 49,500 – 49,600. RSI is in the moderate territory, and 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.