NASDAQ Index, SP500, Dow Jones Forecasts – Stocks Rally As Jobs Reports Miss Expectations

Key Insights

• SP500 tested the 4370 level as traders bet that Fed will start cutting rates in 2024. 
• NASDAQ settled above the 15,000 level amid a broad rally in the equity markets. 
• Dow Jones tested resistance at 34,000 – 34,150 despite Apple’s pullback.

SP500

SP500 rallied as traders reacted to the Non Farm Payrolls report, which showed that the economy added 150,000 jobs in October. Analysts expected Non Farm Payrolls of 180,000. Unemployment Rate increased from 3.8% in September to 3.9% in October, compared to analyst consensus of 3.8%. The weaker-than-expected reports show that Fed’s rate hikes have started to put pressure on the job market. Thus, traders bet that Fed will start cutting rates in 2024, which will be bullish for stocks.

SP500 enjoyed a strong rally from 4105 to 4370 without any pullback. RSI is in the extremely overbought territory, so the risks of a pullback are rising. It remains to be seen whether SP500 will be able to settle above the resistance at 4380 – 4400 ahead of the weekend.

NASDAQ

NASDAQ gained ground amid rising demand for tech stocks. The strong pullback in Treasury yields provided additional support to NASDAQ. Interestingly, the rally is led by Moderna, which is up by 8% after yesterday’s sell-off.

The nearest resistance level for NASDAQ is located in the 15,200 – 15,350 range. A move above 15,350 will provide NASDAQ with a chance to gain additional upside momentum.

Dow Jones

Dow Jones tests resistance at 34,000 – 34,150 amid a strong rally in the equity markets. Most stocks in the index are moving higher, but Apple is down by 1% as traders react to the weak sales guidance.

The rally is strong, so RSI is close to the overbought territory. Dow Jones may need additional catalysts to move above 34,150 without a pullback.

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