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NASDAQ Index, SP500, Dow Jones Forecasts – Stocks Soar As Traders Bet On End Of Rate Hikes

By:
Vladimir Zernov
Published: Nov 2, 2023, 19:04 GMT+00:00

Major indices rally as traders expect that Fed will start cutting rates in 2024.

NASDAQ Index, SP500, Dow Jones Forecasts

In this article:

Key Insights

  • SP500 settled above the 4300 level as traders focused on a more dovish Fed. 
  • NASDAQ rallied above 14,900 amid rising appetite for risk. 
  • Dow Jones climbed towards 33,800 amid a broad rally in the equity markets. 

SP500

SP500
SP500 021123 4h Chart

SP500 rallied as traders bet that Fed will not raise rates. Currently, the market expects that Fed will start cutting rates in 2024 to provide additional support to the economy. The yield of 30-year Treasuries pulled back towards the 4.80% level as bond traders adjusted their positions according to the current Fed policy outlook. Today, traders also focused on the Initial Jobless Claims report, which showed that 217,000 Americans filed for unemployment benefits in a week. Unit Labour Costs declined by 0.8% in the third quarter as productivity increased, which served as an additional bullish catalyst for stocks. Today’s rally is broad, and all market segments are moving higher. The rally is led by Real Estate stocks, which is not surprising as the yields are falling.

SP500 has recently moved above the resistance at 4260 – 4260. RSI is in the extremely overbought territory, so the risks of a pullback are increasing.

NASDAQ

NASDAQ
NASDAQ 021123 4h Chart

NASDAQ has also rallied amid rising demand for tech stocks. Moderna was the only notable loser in the NASDAQ index today. The stock was down by 8% as the company took a $1.3 billion writedown on unused Covid shots.

If NASDAQ stays above the resistance at 14,560 – 14,680, it will head towards the next resistance level, which is located in the 15,200 – 15,300 range.

Dow Jones

Dow Jones
Dow Jones 021123 4h Chart

Dow Jones enjoyed strong support in today’s trading session. The rally was extremely broad, and just one stock in the index found itself under pressure.

Dow Jones settled above the previous resistance at 33,000 – 33,100 and is moving towards the next resistance, which is located in the 34,000 – 34,100 range. RSI is in the overbought territory, but there is enough room to gain additional momentum.

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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