NASDAQ Index, SP500, Dow Jones Forecasts – Stocks Rally As Traders Bet On Rate Cuts After Powell’s Comments

SP500

SP500 tests new highs as traders react to Powell’s comments and focus on the strong pullback in the oil markets. Powell noted that current rates were modestly restrictive. This comment provided material support to SP500 as chances for a rate cut at the upcoming Fed meetings increased. Oil prices are down by more than 4% as Israel and Iran agreed to cease fire. Lower oil prices lead to lower inflation, which is bullish for stocks as it provides Fed with an opportunity to cut rates. Today, traders also had a chance to take a look at CB Consumer Confidence report. The report indicated that CB Consumer Confidence decreased from 98.4 in May to 93 in June, compared to analyst forecast of 100. The weaker-than-expected report did not put pressure on stocks as traders were focused on geopolitical developments and Fed policy outlook. Energy stocks remained under pressure due to the sell-off in the oil markets, while other market sectors gained ground in today’s trading session.

A successful test of the resistance at 6090 – 6100 will push SP500 towards the 6150 level. RSI is close to the overbought territory, but there is enough room to gain momentum in the near term.

NASDAQ

NASDAQ gained strong upside momentum amid rising demand for tech stocks. Intel and Advanced Micro Devices are among the biggest gainers in the NASDAQ index today.

In case NASDAQ manages to settle above the resistance at 22,250 – 22,300, it will head towards the 22,500 level.

Dow Jones

Dow Jones moved higher amid broad rally in the equity markets. Chevron, which was down by 2.3%, was the only notable loser in today’s trading session.

If Dow Jones stays above the 43,000 level, it will head towards the nearest resistance at 43,300 – 43,400.

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