NASDAQ Index, SP500, Dow Jones Forecasts – Stocks Rebound As Unemployment Rate Drops To 3.8%

Vladimir Zernov
Updated: Apr 5, 2024, 20:05 GMT+00:00

Key Points:

  • SP500 managed to settle back above the 5200 level.
  • NASDAQ rebounded amid rising demand for tech stocks.
  • Dow Jones made an attempt to settle above the 39,000 level.
NASDAQ Index, SP500, Dow Jones Forecasts

In this article:


SP500 050424 4h Chart

SP500 rebounded after yesterday’s sell-off as traders reacted to the better-than-expected Non Farm Payrolls report. The report indicated that U.S. economy added 303,000 jobs in March, compared to analyst consensus of 200,000. Unemployment Rate declined from 3.9% in February to 3.8% in March, compared to analyst forecast of 3.9%. Both reports highlighted the strength of the U.S. economy. Treasury yields moved higher, which is not surprising as Fed may be forced to be more hawkish due to the strong economy. If the economy creates jobs despite high interest rates, Fed may keep them at current levels for longer to fight inflation. Today’s rally is broad, and most market segments are moving higher. Meanwhile, yield-sensitive utilities stocks have found themselves under some pressure.

SP500 has managed to settle back above the 5180 – 5190 level. In case SP500 climbs above the 50 MA at 5231, it will head towards the resistance at 5260 – 5270.


NASDAQ 050424 4h Chart

NASDAQ moved higher as traders used the recent pullback as an opportunity to increase their long positions in tech stocks. It should be noted that Tesla remains under pressure. The stock is down by 3.9% as reports indicated that it scrapped the less-expensive car. Elon Musk denied the reports, but traders remained worried about competition from Chinese EV makers.

If NASDAQ climbs above the 50 MA at 18.228, it will head towards the next resistance, which is located in the 18,350 – 18,400 range.

Dow Jones

Dow Jones
Dow Jones 050424 4h Chart

Dow Jones is also moving higher amid a broad rebound in the equity markets. Intel, which is down by 2.7%, is the only notable loser in the Dow Jones index today. The stock is under pressure as traders stay focused on the problems of Intel’s foundry business.

In case Dow Jones climbs above the 39,000 level, it will head towards the next resistance at 39,250 – 39,300.

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

About the Author

Vladimir is an independent trader and analyst with over 10 years of experience in the financial markets. He is a specialist in stocks, futures, Forex, indices, and commodities areas using long-term positional trading and swing trading.

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