Nasdaq 100, Dow Jones, S&P 500 News: Semiconductor Stocks Decline Despite Overall Index Rise.

Dow Jones Industrial Average

The Dow Jones Industrial Average edged up by a mere 17 points, or less than 0.1%, on Thursday as investors turned their focus to upcoming inflation data for guidance on future Federal Reserve interest rate moves. This minor gain reflects a cautious market sentiment. Key corporate earnings also impacted the Dow, with Levi Strauss and Walgreens Boots Alliance seeing significant declines due to disappointing revenue and lowered earnings outlooks, respectively. As traders await the core personal consumption expenditures price index report, the Dow’s performance underscores the broader market’s delicate balancing act amidst economic uncertainties.

The Dow Jones Industrial Average shows consolidation around the 39,100 support level with resistance near 39,200. The 50-period SMA at 39,064 indicates a support level, while the RSI at 53 suggests a neutral momentum. A break above 39,200 could target the 39,700 resistance zone, whereas a drop below 39,000 may test lower support around 38,600.

S&P 500

The S&P 500 hovered near the flatline on Thursday, indicating a day of minimal movement as Wall Street anticipated fresh inflation data. The broad market index slightly dipped, reflecting market hesitancy. Investors are keenly awaiting the core personal consumption expenditures price index, the Federal Reserve’s preferred inflation measure.

Semiconductor stocks, particularly Micron and Nvidia, saw declines, questioning the sustainability of the artificial intelligence-driven market rally. This cautious trading environment signals a market on hold, pending clearer signals on inflation and potential Fed rate adjustments, which could shape the market’s direction in the near term.

The S&P 500 index is trading near 5,498, slightly above its 50-period SMA at 5,484, indicating strong support. Immediate resistance lies at 5,530. The RSI at 58 suggests moderate bullish momentum. A breakout above 5,530 could target higher resistance at 5,575, while a dip below 5,485 may test support around 5,455 and 5,330.

Nasdaq Composite

The Nasdaq Composite gained 0.2% on Thursday, showing resilience compared to the broader market. Despite semiconductor stocks like Micron and Nvidia experiencing losses, the tech-heavy index managed a modest rise. The market is closely watching the core personal consumption expenditures price index for insights into inflation and potential Federal Reserve interest rate cuts. The anticipation of this key data point reflects the market’s sensitivity to inflation trends and monetary policy shifts. As traders await these economic indicators, the Nasdaq’s slight uptick suggests cautious optimism amidst ongoing sector-specific challenges and broader market volatility.

The Nasdaq 100 is trading at 19,821, showing strength above its 50-period SMA at 19,794. Immediate resistance is at 19,995, with further resistance at 20,111. The RSI at 59 indicates bullish momentum. A move above 20,000 could target new highs, while a drop below 19,794 might test support at 19,650 and 19,595.