NASDAQ Index, SP500, Dow Jones Forecasts – Stocks Rally As Trump Says Iran Wants To Talk

SP500

SP500 gains ground as traders react to recent comments from Donald Trump, who said that Iran wanted to talk about de-escalation of the conflict. The key oil export infrastructure was not targeted, so oil prices pulled back from recent highs. Not surprisingly, energy stocks were among the biggest losers in the SP500 index today. Utilities and healthcare stocks have also found themselves under pressure as demand for safe-haven assets declined. From a big picture point of view, traders have already started to prepare for Fed Interest Rate Decision, which will be released on Wednesday.

SP500 settled back above the support at 6000 – 6010 and is trying to gain additional upside momentum. In case this attempt is successful, SP500 will head towards the nearest resistance level, which is located in the 6090 – 6100 range.

NASDAQ

NASDAQ gained ground amid rising demand for riskier assets. Traders bet that Israel – Iran conflict will not escalate further, and that oil export infrastructure would stay safe. In this scenario, oil prices will not rally, and Fed will not be forced to raise rates in order to fight inflation. Such a scenario is bullish for NASDAQ index.

Currently, NASDAQ is trying to settle above the resistance level at 21,950 – 22,000. In case this attempt is successful, NASDAQ will head towards the next resistance at 22,250 – 22,300. RSI is in the moderate territory, and there is plenty of room to gain momentum in case the right catalysts emerge.

Dow Jones

Dow Jones climbed towards the resistance level at 42,700 – 42,800 amid broad rally in the equity markets.

if Dow Jones manages to settle above the 42,800 level, it will head towards the next resistance level, which is located in the 43,200 – 43,300 range.

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