NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Rallies As Alphabet Gains 9.6%

SP500

SP500 gains ground amid rising demand for tech stocks. The rally is led by Alphabet, which is up by 9.6% after the release of the strong earnings report. As usual, traders focused on the company’s potential in the AI space. Today, traders also had a chance to take a look at the important PCE Price Index report. The report indicated that PCE Price Index increased from 2.5% in February to 2.7% in March, compared to analyst consensus of 2.6%. Personal Spending increased by 0.8% month-over-month in March, while analysts expected that it would grow by 0.6%. Rising PCE Price Index and higher Personal Spending highlight Fed’s problems in its fight against inflation. Most likely, the Fed will be forced to be more hawkish than previously expected to bring inflation closer to its 2% target.

Currently, SP500 is trying to settle above the resistance at 5100 – 5110. In case this attempt is successful, SP500 will head towards the next resistance, which is located in the 5180 – 5190 range.

NASDAQ

NASDAQ rallied as traders rushed to buy AI-related stocks after Alphabet’s report. NVIDIA, which is up by 5.7%, is also among the biggest gainers in the NASDAQ index today. From a big picture point of view, the market sentiment remains bullish as traders believe that AI revolution will boost earnings in the tech space.

The nearest resistance level for NASDAQ is located in the 17,800 – 17,900 range. A move above 17,900 will open the way to the test of the resistance at 18,300 – 18,400.

Dow Jones

Dow Jones did not manage to gain strong momentum due to the sell-off in Intel stock. Intel is down by 9.4% as the company presented disappointing guidance for the second quarter. Analysts rushed to cut their price targets for Intel, putting additional pressure on the stock.

In case Dow Jones manages to settle above 38,300, it will head towards the nearest resistance level, which is located in the 38,500 – 38,550 range.

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