NASDAQ Index, SP500, Dow Jones Forecasts – Choppy Trade as Investors Reassess Portfolios

S&P 500

The S&P 500 experienced little change on Wednesday as investors reassessed their portfolios following a robust first half of the year, significantly driven by AI-related stocks. Despite recent gains, the broad market index faced its fourth losing day in five, closing the week with nearly a 15% six-month gain. The market is bracing for the release of May’s personal consumption expenditures price index, a key inflation metric, which could influence future Federal Reserve interest rate decisions.

The S&P 500 index is trading around 5,483, with key support at 5,440 and resistance at 5,520. The 50-period moving average at 5,477.9 provides additional support. The Relative Strength Index (RSI) is neutral at 52.12, indicating balanced momentum. The index shows signs of consolidation, suggesting potential for a breakout or further consolidation in the near term.

Nasdaq Composite

The tech-heavy Nasdaq Composite edged up 0.3% on Wednesday, buoyed by a continued rally in AI stocks, particularly Nvidia. Nvidia’s recent surge, despite a 0.9% decline on Wednesday, has significantly influenced the index, contributing to its impressive 18.4% first-half gain. The broader market sentiment remains cautious as investors await upcoming inflation data, which could shape expectations for Federal Reserve policy adjustments later this year.

The Nasdaq Composite is experiencing downward pressure, currently trading around 19,696. Key support levels are at 19,649 and 19,595, with resistance at 19,783.6 and 19,995.8. The Relative Strength Index (RSI) at 48.38 indicates weakening momentum. The 50-period moving average is acting as resistance, suggesting potential for further decline if support levels fail to hold.

Dow Jones Industrial Average

The Dow Jones Industrial Average remained near the flatline on Wednesday, bolstered by strong performances from Amazon, Apple, and Home Depot. Amazon was the standout, rising 4.1%, making it the top performer in the 30-stock index. Conversely, Amgen declined by 1.2%, marking it as the worst performer. Investors are closely monitoring economic indicators and corporate earnings for future direction amidst a generally cautious trading environment.

The Dow Jones Industrial Average is trading at 39,182, showing resilience above the 50-day moving average at 38,992. Key support is noted at 39,006, with resistance around 39,702. The RSI at 51.77 indicates neutral momentum. The index is consolidating within a tight range, suggesting potential for a directional move once it breaks through current support or resistance levels.