NASDAQ Index, SP500, Dow Jones Forecasts – Dow Jones Tests New Highs Amid Rising Demand For Financial Stocks

Key Insights

• SP500 is mostly flat as traders are cautious ahead of tomorrow’s Fed Interest Rate Decision. 
• NASDAQ is losing ground as traders take some money off the table ahead of the earnings reports of tech stocks. 
• Dow Jones gains ground, boosted by the strong performance of financial stocks. 

SP500

SP500 is swinging between gains and losses as traders react to economic reports. JOLTs Job Openings increased from 8.925 million in November to 9.026 million in December, highlighting the strength of the job market. CB Consumer Confidence improved from 108 in December to 114.8 in January, compared to analyst consensus of 115. Markets did not show strong reaction to the reports as traders were cautious ahead of the Fed decision, which will be released tomorrow. The Fed is expected to leave the rate unchanged, so traders will focus on Powell’s comments. Equity markets are at historic highs, so stocks will be extremely sensitive to Powell’s words. Hawkish comments may trigger a wave of profit-taking.

The nearest support level for SP500 is located in the 4900 – 4910 range. In case SP500 settles back below the 4900 level, it will head towards the next support at 4850 – 4865.

NASDAQ

NASDAQ pulls back as traders take profits near historic highs. The pullback is led by Advanced Micro Devices, which is down by 4% in today’s trading session. Traders decided to take some money out of Advanced Micro Devices stock ahead of the earnings report, which will be released today after the market close.

Currently, NASDAQ is trying to settle below the support at 17,450 – 17,500. In case this attempt is successful, NASDAQ will head towards the next support level, which is located in the 16,950 – 17,000 range.

Dow Jones

Dow Jones tests new highs, driven by the strong performance of financial stocks. JPMorgan Chase, Goldman Sachs, and Visa are among the biggest gainers in the Dow Jones index today.

RSI has recently moved into the overbought territory, so the risks of a pullback are increasing.

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