NASDAQ Index, SP500, Dow Jones Analysis – NASDAQ Gains 1.7% As Tech Stocks Rally

Key Insights

• SP500 tests the 50 MA at 4385.
• NASDAQ rallies amid rising demand for tech stocks. 
• Dow Jones managed to settle above the 33,875 level. 

SP500

SP500 gains ground as traders react to the strong economic data. Durable Goods Orders increased by 1.7% month-over-month in May, compared to analyst consensus of -1%. CB Consumer Confidence grew to yearly highs as consumers expected additional declines in inflation. New Home Sales increased by 12.2% month-over-month in May, compared to analyst consensus of -1.7%. The economy remains in a decent shape so traders shrug off rate hike worries. Today’s rally is broad, but energy stocks are losing ground due to the pullback in the oil markets.

From the technical point of view, SP500 received strong support in the 4335 – 4350 range and is moving higher. If SP500 settles above the 50 MA at 4385, it will head towards the resistance at the recent highs at 4430 – 4450.

NASDAQ

NASDAQ gained 1.7% amid rising demand for tech stocks. AI boom remains the key catalyst for the tech-heavy NASDAQ, and chip stocks are among the biggest gainers in the NASDAQ index today.

Traders used the recent pullback as an opportunity to buy tech stocks at more attractive levels. Currently, NASDAQ is trying to settle above the 50 MA at 14,990. A move above this level will push NASDAQ towards the resistance in the 15,200 – 15,300 range.

Dow Jones

Dow Jones has also managed to gain some ground in today’s trading session, although the move was not strong. The sell-off in Walgreens Boots Alliance, which is down by 9% after the earnings report, had a negative impact on Dow Jones today.

Dow Jones has recently managed to settle above the 33,875 level, which was a bullish sign. RSI remains in the moderate territory, so there is plenty of room to gain additional momentum in case the right catalysts emerge.

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