NASDAQ Index, SP500, Dow Jones Forecasts – Major Indices Rally As Traders Buy Tech Stocks

SP500

SP500 rallied as traders reacted to weaker-than-expected PMI reports. Manufacturing PMI decreased from 51.9 in March to 49.9 in April, while Services PMI declined from 51.7 to 50.9. Both reports missed analyst estimates. The reports boosted hopes for a more dovish Fed. The yield of 2-year Treasuries pulled back below the 4.95% level as bond traders reacted to PMI data, which was bullish for SP500. Today, traders also focused on the New Home Sales report, which showed that New Home Sales increased by 8.8% month-over-month in March. Analysts expected that New Home Sales would grow by 2.7%, so the report exceeded expectations. Today’s rally was broad, and most market segments moved higher. The rally was led by tech stocks, which continue to recover after the recent sell-off.

SP500 moved above the resistance at 5035 – 5050 and is trying to settle above the 5075 level. In case this attempt is successful, SP500 will head towards the next resistance level, which is located in the 5100 – 5110 range.

NASDAQ

NASDAQ tests resistance at 17,450 – 17,500 amid rising demand for tech stocks. Traders are ready to buy AI-related stocks after the recent pullback. Investors should note that Tesla will report its earnings today after the market closes. This report may have a material impact on market dynamics.

In case NASDAQ manages to settle above the 17,500 level, it will gain additional upside momentum and move towards the next resistance at 17,800 – 17,900.

Dow Jones

Dow Jones is moving higher amid a broad rally in the equity markets. However, Dow Jones did not gain solid momentum as traders were mostly focused on tech stocks, while demand for defensive sectors was weaker.

Currently, Dow Jones is trying to settle above the resistance at 38,500 – 38,550. A move above 38,550 will push Dow Jones towards the next resistance level at 39,050 – 39,150.

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