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Nasdaq, S&P 500, Dow: US CPI & Earnings Set to Drive Market Moves
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As January CPI forecasts hint at a drop to 2.9%, Wall Street gears up for a cautious trading day, eyeing Fed's next 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.
About the Author
Arslan Aliauthor
Arslan is a finance MBA and also holds an MPhil degree in behavioral finance. An expert in financial analysis and investor psychology, Arslan uses his academic background to bring valuable insights about market sentiment and whether instruments are likely to be overbought or oversold.
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