NASDAQ Index, SP500, Dow Jones Forecasts – Stocks Rally As Trump Halts Iran Strikes

SP500 Soars As Traders Bet On Iran Deal

SP500 rallied as President Trump cancelled planned strikes against Iran. Trump said that final points have been approved by all parties involved. It should be noted that the list of parties he presented did not include Iran. At the time of writing, Iran did not comment on the issue.

Trump also said that discussions were brought to the highest level of Iranian leadership and added that the time and place of signing would be announced shortly.

Oil prices dived 5% as traders reacted to Trump’s surprising announcement. Oil markets will likely remain extremely volatile in the near term as Iran has not confirmed that the deal was reached.

Today, traders also focused on the Producer Prices report. The report indicated that PPI increased by +1.1% month-over-month in May, compared to analyst forecast of +0.7%. Core PPI grew by +0.4% on a month-over-month basis, compared to analyst consensus of +0.5%.

Traders also had a chance to take a look at the Initial Jobless Claims report. The report showed that 229,000 Americans filed for unemployment benefits in a week, compared to analyst consensus of 219,000.

Treasury yields pulled back as traders focused on de-escalation in the Middle East. High oil prices fuel inflation, so bond traders put more weight on  geopolitical developments compared to Producer Prices data.

The rally was broad, and most market sectors moved higher in today’s trading session. Basic materials stocks were among the biggest gainers today as traders focused on the strong rebound in precious metals markets.

Not surprisingly, energy stocks moved lower due to the strong sell-off in the oil markets.

Currently, SP500 is trying to settle above the resistance level at 7350 – 7360. In case this attempt is successful, SP500 will head towards the next resistance, which is located in the 7450 – 7460 range.

NASDAQ Rebounds As Traders Focus On Oracle’s Report

NASDAQ gained strong upside momentum, supported by geopolitical developments. Chip stocks moved higher as Oracle‘s report highlighed strong demand for their products.

Oracle stock was down by -10% as the company raised AI infrastructure capex guidance and forecasted lower margins.

The nearest resistance level for NASDAQ is located in the 29,250 – 29,300 range. A successful test of this level will open the way ot the test of the next resistance at 29,800 – 29,850. RSI remains in the moderate territory, so there is plenty of room to gain momentum in the near term.

Dow Jones Gains Ground As Boeing Rallies 5%

Dow Jones moved higher amid broad rally in the equity markets. Most stocks in the index gained ground in today’s trading session.

Boeing, which was up by 5%, was the biggest gainer in the Dow Jones index today. Microsoft and Salesforce were notable losers.

Dow Jones climbed above the support at 50,400 – 50,500 and is trying to settle above the 50,700 level. In case this attempt is successful, Dow Jones will get to the test of the 50 MA at 50,882. A move above the 50 MA will open the way to the test of the resistance level at 51,000 – 51,100.

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