Nasdaq, S&P 500, Dow: US CPI & Earnings Set to Drive Market Moves

Key Insights

• January CPI expected to drop to 2.9% year-on-year, potentially affecting Fed’s interest rate strategy.
• Earnings from Coca-Cola and Shopify in focus, alongside Bitcoin’s surge past $50,000 mark.
• With futures pointing lower and major earnings reports due, the markets are on edge, reflecting the intricate dance between economic data and investor sentiment.

Market Watch: Inflation Data and Earnings Reports Set Tone for Wall Street

Wall Street braces for a cautious start as investors anticipate the January U.S. inflation report, crucial for the Federal Reserve’s interest rate decisions. This comes alongside earnings reports from Coca-Cola and Shopify, with Bitcoin surpassing $50,000.

Expected to slow to 2.9% year-on-year from 3.4%, January’s CPI could impact the Fed’s stance on future rate cuts, aiming for a “soft landing” to curb inflation without harming economic growth.

U.S. stock futures, including the S&P 500, Nasdaq, and Dow, indicate a lower opening, reflecting the mixed performance in previous sessions.

This week also sees key earnings from Coca-Cola, Shopify, Airbnb, Cisco Systems, and Coinbase, offering insights into consumer behavior and the tech sector’s prospects amidst AI and cryptocurrency market fluctuations.

SPX SP500 Price Forecast

The S&P 500 (SPX)‘s pivot point stands at $5043.60, suggesting a bearish outlook in the short term. Resistance levels are marked at $5070.03, $5095.24, and $5122.64, which the index needs to overcome to signal a bullish reversal.

Conversely, immediate support is found at $5004.10, with further cushions at $4974.08 and $4940.90, critical for preventing deeper losses. The 50-day and 200-day Exponential Moving Averages, at $4949.79 and $4783.33 respectively, provide a broader view of the market’s momentum, with the current price action indicating potential volatility ahead.

Given these dynamics, the S&P 500’s future direction hinges on its ability to breach the pivotal $5043.60 mark, with the current stance being bearish below this threshold.

Dow Price Forecast

The Dow Jones Industrial Average (DJIA)’s pivot point is positioned at $38713.71, the DJIA is navigating through immediate resistance levels at $38,814.38, $38,890.37, and $38,983.64. Support levels are closely monitored at $38642.74, $38566.83, and $38456.26, offering a foundation for potential rebounds.

The 50-day and 200-day Exponential Moving Averages, standing at $38675.24 and $38333.47 respectively, underscore a positive trend, aligning with the index’s current trajectory above the pivot point.

This technical setup indicates a bullish outlook for the DJIA, contingent on maintaining levels above $38713.71, highlighting investor optimism in navigating market dynamics.

NASDAQ Price Forecast

The NASDAQ Composite Index displayed cautious trading dynamics, gravitating around a pivot point of $16,008.15. The index faces immediate resistance levels at $16,081.05, $16,167.23, and $16,253.27, which are crucial for indicating a continued upward momentum.

Conversely, support is established at $15,868.54, with further safety nets at $15,801.99 and $15,737.06, pivotal for cushioning any downward movements. The 50-day and 200-day Exponential Moving Averages, at $15,406.93 and $14,533.69 respectively, suggest a solid underpinning for the index’s longer-term bullish trend.

However, the current stance is bearish below the $16,008.15 mark, emphasizing the index’s sensitivity to immediate market fluctuations and investor sentiment.

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