NASDAQ Index, SP500, Dow Jones Forecasts – Stocks Rebound From Session Lows As Traders Buy The Dip

SP500

SP500 rebounded from session lows as traders reacted to GDP Growth Rate report. The report indicated that GDP Growth Rate declined from 3.4% in Q4 2023 to 1.6% in Q1 2024, compared to analyst consensus of 2.5%. Interestingly, Treasury yields moved higher despite the disappointing GDP data. The yield of 2-year Treasuries settled near the 5.00% level, while the yield of 10-year Treasuries climbed above 4.70%. Today, traders also focused on the Pending Home Sales report, which showed that Pending Home Sales increased by 3.4% month-over-month in March. Initial Jobless Claims declined from 212,000 to 207,000, compared to analyst consensus of 214,000. It looks that general market sentiment remains bullish as SP500 managed to move away from session lows despite the disappointing GDP data.

In case SP500 manages to settle back above the support at 5035 – 5050, it will head towards the nearest resistance level at 5100 – 5110.

NASDAQ

NASDAQ has also managed to rebound from session lows despite the sell-off in Meta stock. Meta is down by 10.2% as traders react to the company’s earnings report. Traders are worried that Meta will spend too much on AI, which will have a negative impact on the company’s earnings.

NASDAQ is trying to climb above the nearest resistance level at 17,450 – 17,500. In case this attempt is successful, NASDAQ will head towards the next resistance at 17,800 – 17,900.

Dow Jones

Dow Jones remains under pressure due to strong pullbacks in IBM and Caterpillar stocks. Both stocks  have found themselves under pressure after the release of the companies’ earnings reports.

Dow Jones found support in the 37,800 – 37,900 range and is trying to settle above the 38,150 level. A move above this level will open the way to the test of the nearest resistance, which is located in the 38,500 – 38,550 range.

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