NASDAQ Index, SP500, Dow Jones Forecasts – Stocks Rally As GDP Growth Rate Beats Estimates

SP500

SP500 gains ground as traders focus on economic data and react to geopolitical developments. The third-quarter GDP Growth Rate was 4.4%, compared to analyst consensus of 4.3%. The report showed that U.S. economy grew at a robust pace in the third quarter. Personal Spending increased by 0.5% month-over-month in November, while Personal Income grew by 0.3%. Initial Jobless Claims report indicated that 200,000 Americans filed for unemployment benefits in a week, compared to analyst forecast of 212,000. From a big picture point of view, the reports highlighted the strength of the U.S. economy. President Donald Trump decided not to impose tariffs on countries that opposed his plans to buy Greenland. According to recent reports, EU lawmakers will soon vote on the ratification of the trade deal with the U.S. Treasury yields moved way from recent highs, providing additional support to major indices.

Currently, SP500 is trying to settle above the resistance at 6940 – 6950. In case this attempt is successful, SP500 will move towards the next resistance level, which is located in the 6990 – 7000 range.

NASDAQ

NASDAQ gained ground amid rising appetite for risk. Meta, which was up by 5.3%, was among the best performers in the NASDAQ index today. The stock moved higher as traders used the recent pullback as an opportunity to increase their long positions.

In case NASDAQ manages to settle above the 25,600 level, it will head towards the nearest resistance, which is located in the 25,800 – 25,850 range.

Dow Jones

Dow Jones tests resistance at 49,500 – 49,600 amid broad rally in the equity markets. 3M, which is up by 3.5%, is the biggest gainer in the Dow Jones index today. The stock has started to rebound after the disappointing report, which was released a couple of days ago.

A move above the 49,600 level will open the way to the test of the 50,000 level. RSI is close to the overbought territory, but there is enough room to gain momentum in the near term.

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