NASDAQ Index, SP500, Dow Jones Analysis – Stocks Gain Ground As PCE Price Index Drops To 5%

Key Insights

• SP500 climbed towards the 4100 level as the appetite for risk remained strong. 
• NASDAQ managed to settle above the 13,000 level amid rising demand for tech stocks. 
• Dow Jones moved above the 50 EMA and settled near the 33,100 level. 

SP500

SP500 rallied towards the 4100 level as PCE Price Index grew by just 0.3% in February, compared to analyst consensus of 0.5%.

On a year-over-year basis, PCE Price Index declined from 5.4% in January to 5% in February. PCE Price Index is Fed’s preferred measure of inflation. Thus, the Fed may stop raising rates to provide additional support to the economy, which is bullish for stocks.

Today’s rally is broad, and all market segments are moving higher. Interestingly, energy stocks are among laggards despite the continuation of the rebound in the oil markets.

While the rally is strong, RSI remains in the moderate territory, so there is plenty of room to gain additional upside momentum in the upcoming trading sessions.

NASDAQ

NASDAQ moved above the 13,100 level after the successful test of the resistance at 13,000. Treasury yields are moving lower, which is bullish for the yield-sensitive tech stocks.

In NASDAQ’s case, RSI is close to the overbought territory, so the risks of a pullback are increasing. Traders may soon start taking profits after the strong rally.

Dow Jones

Dow Jones settled above the 50 EMA at 32,880 and moved above the 33,100 level. Intel  is the biggest gainer in the Dow Jones today as demand for tech stocks remains strong. The rally is broad, and just three Dow Jones components are losing ground in today’s trading session. In case Dow Jones manages to settle above the resistance at 33,200, it will head towards the next material resistance level, which is located at 33,600.

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