NASDAQ Index, SP500, Dow Jones Forecasts – Stocks Rally As Earnings Season Picks Up

Key Insights

• SP500 moved towards the 4380 level as traders reacted to the dovish comments from Fed’s Harker. 
• NASDAQ made an attempt to settle above the resistance at 15,200 – 15,300.
• Dow Jones climbed towards the 34,000 level. 

SP500

SP500 gains ground as traders bet that companies would mostly beat analyst estimates during the earnings season. The rally is broad, and all market segments are moving higher. The bullish sentiment is strong, so even energy stocks are gaining ground despite the pullbacks in the oil and natural gas markets. Traders also react to the dovish comments from Fed’s Harker, who signaled that Fed should not raise rates again this year.

From the technical point of view, SP500 settled above the 4350 level and is moving towards 4400. A move above 4400 will open the way to the test of the next resistance, which is located in the 4445 – 4465 range.

NASDAQ

NASDAQ gains ground amid rising demand for tech stocks. The rally is extremely broad, and just 8 stocks in the NASDAQ index are losing ground in today’s trading session. The biggest loser is Moderna, which is under pressure as traders expect that Covid-19 vaccine sales will not be impressive.

Currently, NASDAQ is trying to settle above the resistance at 15,200 – 15,300. In case this attempt is successful, NASDAQ will head towards the next resistance level at 15,800 – 15,900.

Dow Jones

Dow Jones moved towards the 34,000 level amid a broad rally in the equity markets. Nike, which is up by 2.4%, is the biggest gainer in the Dow Jones index today.

If Dow Jones settles above the 34,000 level, it will head towards the next resistance, which is located at 34,300 – 34,400.

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