NASDAQ Index, SP500, Dow Jones Analysis – Stocks Mixed After Inflation Reports

Key Insights

• SP500 is mostly flat as traders stay cautious after the release of U.S. inflation data. 
• NASDAQ tested new highs as demand for AI-related stocks remained strong. 
• Dow Jones pulled back amid recession worries. 

SP500

SP500 is mostly flat as traders react to the U.S. inflation data. Inflation Rate declined from 5% in March to 4.9% in April, while Core Inflation Rate decreased from 5.6% to 5.5%. While inflation remains well above Fed’s 2% target, the recent reports show that Fed’s rate hikes have already put material pressure on inflation. Treasury yields moved lower after the release of inflation reports. However, it looks that traders remain cautious amid recession worries.

In case SP500 manages to settle above the resistance at 4150, it will head towards the next resistance level, which is located at 4175. A move above this level will push SP500 towards the resistance at 4200.

R1:4150 – R2:4175 – R3:4200

S1:4115 – S2:4090 – S3:4070

NASDAQ

NASDAQ tested new highs as demand for tech stocks remained strong. Alphabet, which is up by 4%, is the most notable gainer in the NASDAQ index today. The company’s shares are moving higher as traders remain bullish on AI-related stocks.

A move above the 13,400 level will push NASDAQ towards the resistance at 13,550. In case NASDAQ climbs above this level, it will head towards the next resistance at 13,700.

R1:13,400 – R2:13,550 – R3:13,700

S1:13,250 – S2:13,140 – S3:13,000

Dow Jones

Dow Jones pulled back as the majority of its components moved lower due to recession worries. American Express, which is down by 3%, is the worst performer in the Dow Jones index today.

A successful test of the 33,300 level will push Dow Jones towards the next support at 33,175. If Dow Jones settles below 33,175, it will head towards the 33,000 level.

R1:33,500 – R2:33,700 – R3:33,850

S1:33,300 – S2:33,175 – S3:33,000

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