NASDAQ Index, SP500, Dow Jones Forecasts – Blue-Chip Average Outperforms on Bank, Energy Gains

S&P 500

The S&P 500 traded near the flatline on Monday, caught between sector rotations. While information technology was the biggest declining sector, falling 1.5%, energy, financials, and utilities each gained more than 1%. The index has advanced nearly 15% this year, notching 31 record closes. Investors are closely watching for Friday’s release of the Personal Consumption Expenditures (PCE) price index, the Federal Reserve’s preferred inflation measure. The market is pricing in a 61% chance of a rate cut in September. Despite the day’s mixed performance, the S&P 500 recently hit fresh all-time highs.

The S&P 500 Index struggled to gain its footing on Monday, allowing the 50-4-hour moving average at 5467.00, catch up to the trade. Trader reaction to this level could set the tone for the week.

On the downside, the nearest support zone is 5450.00 to 5440.80. On the upside, the key resistance zone is 5520.00 to 5530.60. It stopped the rally last week at 5530.60.

Nasdaq Composite

The tech-heavy Nasdaq Composite declined 0.7% on Monday, pressured by a significant selloff in major technology names. Nvidia, a key driver of the AI enthusiasm, fell more than 5%, extending its losses from the previous week. Other semiconductor stocks, including Taiwan Semiconductor Manufacturing, Broadcom, Marvell Technology, and Qualcomm, also dropped, dragging down the Philadelphia Semiconductor Index by 2.3%. Despite the day’s losses, tech stocks have lifted the market significantly this year. The Nasdaq recently reached all-time highs, reflecting the ongoing enthusiasm surrounding artificial intelligence despite the day’s rotation into other sectors.

The US100 (Nasdaq) index shows recent bearish momentum, with prices falling below the 50-4-hour moving average at 19759.70 and the key support area at 19595.40 to 19649.60. This zone could turn into resistance.

The RSI indicator is declining and below 50, suggesting weakening buying pressure. Overall, the chart indicates a short-term downtrend with potential for further decline with plenty of room to the downside to 18957.80 to 18907.50.

Dow Jones Industrial Average

The Dow outperformed other major indexes on Monday, climbing 0.7% or 286 points. This rally was driven by a rotation out of technology stocks and into sectors such as banks and energy. Dow components JPMorgan Chase, Goldman Sachs, and Chevron each gained over 1%. jamesNotably, Goldman Sachs, Amgen, and UnitedHealth were significant contributors to the Dow’s gains. The index’s strong performance reflects investor optimism about potential Federal Reserve rate cuts and a broadening market rally beyond AI-linked stocks.