NASDAQ Index, SP500, Dow Jones Forecasts: Climbing on Fed’s Rate Cut Signals

Key Insights

• U.S. stock futures rise, with Dow, S&P 500, and Nasdaq futures up 0.3%, 0.3%, and 0.4%.
• Wall Street indices poised for best streak since 2019 amid Fed’s dovish outlook.
• HSBC forecasts a 6% rise in S&P 500 by end-2024, eyeing gains post-rate cut.
• S&P 500 Index trades around $4,688, showing a bullish trend above this pivot point.
• NASDAQ navigates a bullish path, trading above the pivotal $16,150 mark.

Quick Fundamental Outlook

U.S. stock futures, buoyed by the Federal Reserve’s hints of potential rate cuts and strong retail sales data, are climbing, with Dow, S&P 500, and Nasdaq futures up by 0.3%, 0.3%, and 0.4%, respectively.

This rally positions major Wall Street indices for their best streak since 2019. The Fed’s dovish stance, coupled with cooling inflation, feeds market optimism, prompting HSBC to forecast a 6% rise in the S&P 500 by end-2024, with significant gains post the anticipated rate cut in Q3 2024.

Today, focus shifts to the S&P Global Composite Flash PMI data, amidst eurozone recession concerns.

SPX SP500 Prices Forecast

The S&P 500 Index (SPX) is currently exhibiting a nuanced technical landscape, trading at 4719.54 with a slight increase of 0.26%. Analyzing the 4-hour chart, the index is hovering around a critical pivot point of $4,688.

Key resistance levels are identified at $4,767 and $4,808, with a subsequent threshold at $4,652. Meanwhile, support is found at $4,606, followed by lower levels at $4,538 and $4,476.

The Relative Strength Index (RSI) stands at a high 79, indicating an overbought condition, which could hint at a potential pullback. The Moving Average Convergence Divergence (MACD) at 9.33 is below its signal line of 44.910, suggesting a slowdown in bullish momentum.

Significantly, the index trades well above its 50-Day Exponential Moving Average (EMA) of $4,481, reinforcing a short-term bullish trend.

A notable chart pattern is the formation of ‘Three White Soldiers’, a bullish candlestick pattern, suggesting a strong buying trend and potential further upward movement.

Conclusively, the S&P 500 demonstrates a bullish trend above the $4,688 mark.

Dow Prices Forecast

On December 15th, the Dow Jones Industrial Average (DOW) manifests a positive uptick, marking a 0.35% rise to 37,359.30. The technical analysis, conducted over a 4-hour timeframe, places the DOW above a pivot point of $37,168.

The index now approaches immediate resistance at $37,854, with further hurdles at $38,622 and $39,030. Should the index retract, support levels are established at $36,789, $36,509, and $36,036.

The Relative Strength Index (RSI) reads at an elevated 85, signaling overbought conditions which could presage a future pullback. Meanwhile, the Moving Average Convergence Divergence (MACD) at 25, significantly below its signal line of 271.4, suggests a potential deceleration in upward momentum.

However, the index’s position above the 50-Day Exponential Moving Average (EMA) of $35,185 indicates a prevailing short-term bullish trend.

A notable chart pattern is the presence of ‘Three White Soldiers’, a bullish candlestick formation, which underscores a strong buying trend within the DOW.
In conclusion, the current technical outlook for the DOW is bullish, particularly above the $37,165 threshold.

NASDAQ Prices Forecast