NASDAQ Index, SP500, Dow Jones Forecasts – Stocks Soar On Geopolitical Optimism

SP500 Rallies As Iran’s Pezeshkian Says The Country Is Ready To End The War

SP500 rallied as traders reacted to comments from Iran President Masoud Pezeskhian who indicated that Iran was ready to end the war in case it gets security guarantees.

Oil markets pulled back as traders rushed to take profits off the table after his comments. WTI oil declined towards the $102.00 level, while Brent oil pulled back below $105.00. Falling oil prices provided significant support to major indices.

Treasury yields have also moved lower, serving as an additional bullish catalyst for stocks. The yield of 2-year Treasuries declined below the 3.80% level, while the yield of 10-year Treasuries settled below 4.30%. Treasury yields are moving lower as traders bet that Fed will not raise rates despite rising inflation. Fed Chair Powell has recently said that the central bank could not control energy prices.

Today, traders also focused on JOLTs Job Openings report. The report indicated that JOLTs Job Openings decreased from 7.24 million in January to 6.882 million in February. The weak job market data did not put pressure on stocks as traders focused on geopolitical developments and falling oil prices.

Traders also had a chance to take a look at CB Consumer Confidence report. The report showed that CB Consumer Confidence increased from 91.0 in February to 91.8 in March, compared to analyst consensus of 88. The Present Situation Index increased from 118.7 to 123.3, while the Expectations Index declined from 72.6 to 70.9.

Chicago PMI declined from 57.7 in February to 52.8 in March, compared to analyst forecast of 55. Case-Shiller Home Price index grew by +1.2% year-over-year in January, while analysts expected that it would increase by +1.3%.

Today’s rally was broad, and most market sectors gained strong upside momentum. The rally was led by tech stocks, which are sensitive to changes in the appetite for risk.

Energy stocks found themselves under pressure as traders focused on the sell-off in the oil markets. Consumer defensive and utilities stocks moved lower as demand for safe-haven assets declined.

Currently, SP500 is trying to settle above the 50 MA at 6524. In case this attempt is successful, SP500 will move towards the nearest resistance level, which is located in the 6550 – 6560 range. A successful test of this level will open the way to the test of the next resistance at 6640 – 6650.

NASDAQ Soars Amid Strong Demand For Tech Stocks

NASDAQ gained strong upside momentum as traders bet that U.S. and Iran could reach a deal. Chip stocks were among the biggest gainers in the NASDAQ index in today’s trading session.

From the technical point of view, NASDAQ attempts to settle above the resistance level at 23,600 – 23,650. If NASDAQ settles above 23,650, it will move towards the 50 MA at 23,837. A move above the 50 MA will open the way to the test of the resistance at 24,000 – 24,450.

Dow Jones Gains Ground Amid Rising Risk Appetite

Dow Jones is moving higher amid strong rally in the equity markets. Caterpillar, which is up by 5.9%, is the biggest gainer in the Dow Jones index today.

Dow Jones moved above the 50 MA at 45,914 and is trying to settle above the 46,200 level. In case this attempt is successful, Dow Jones will move towards the strong resistance level at 46,600 – 46,700. RSI is in the moderate territory, so there is plenty of room to gain additional momentum in case the right catalysts emerge.

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