NASDAQ, S&P 500, Dow Jones Analysis – Stocks Keep Moving Higher As Appetite For Risk Grows

Key Insights

• S&P 500 is trying to get to the test of the 4100 level. 
• NASDAQ moved to new highs as Tesla stock rallied.
• Dow Jones’ gains were limited due to the strong sell-offs in Chevron and Intel stocks. 

S&P 500 (SPX500)

S&P 500 is currently trying to settle above the 4080 level. Today, traders focused on the economic data from the U.S. PCE Price Index met expectations, while Consumer Sentiment and Pending Home Sales exceeded analyst forecasts. The economy remains in a decent shape despite recession worries, which is bullish for stocks.

The Fed decision, which will be released on February 1, will be the key event for markets in the near term. At this point, traders are not worried about hawkish Fed. The market expects that Fed will raise the rate by 25 bps at the next meeting and will not be able to push the rate above the 5.00% level in 2023. The encouraging economic reports did not change this consensus, which was bullish for S&P 500.

Today’s move is not broad, and several market segments are moving lower. Energy stocks got hit due to the pullback in oil markets.

American Express is the biggest gainer in the S&P 500 today. The stock is up by 12% after the strong earnings report.

Intel  is among the biggest losers in today’s trading session as the company missed analyst estimates on both earnings and revenue and presented disappointing guidance for the first quarter.

NASDAQ (NAS100)

NASDAQ rallied to new highs as Tesla gained 10% amid reports about high demand for Model Y in the U.S.

The general risk appetite is rising, which is bullish for the tech-heavy NASDAQ. Currently, NASDAQ is trying to settle above the resistance at 12,200. In case this attempt is successful, NASDAQ will move towards the next resistance level at 12,450.

Dow Jones (US30)

Dow Jones is today’s laggard due to the sell-off in Intel and Chevron shares. Chevron is down by 4% today as traders take profits near all-time highs and react to the pullback in oil markets.

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