NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Gains 1.5% As NVIDIA Rallies 6.5%

SP500

SP500 rebounded from session lows and moved higher as traders reacted to inflation reports for August. Inflation Rate increased by 0.2% month-over-month, in line with analyst expectations. On a year-over-year basis, Inflation Rate decreased from 2.9% to 2.5%. Core Inflation Rate grew by 0.3% month-over-month, while analysts expected that it would grow by 0.2%. On a year-over-year basis, Core Inflation Rate remained unchanged at 3.2%. The higher-than-expected Core Inflation Rate put pressure on stocks at the start of the trading session. However, SP500 managed to gain upside momentum amid rising demand for tech stocks.

Currently, SP500 is trying to settle above the 50 MA at 5521. In case this attempt is successful, SP500 will move towards the nearest resistance level, which is located in the 5550 – 5570 range.

NASDAQ

NASDAQ gains ground as traders buy tech stocks. Arm Holdings, Super Micro Computer, and NVIDIA  shares are up by more than 6.5% in today’s trading session.

NASDAQ has recently settled above the 50 MA at 18,967 and is trying to settle above the 19,100 level. If NASDAQ manages to settle above this level, it will move towards the next resistance at 19,500 – 19,600.

Dow Jones

Dow Jones moved away from session lows but did not manage to gain strong upside momentum. Almost half of Dow Jones components found themselves under pressure in today’s trading session. Travelers Companies, Unitedhealth Group, and Procter & Gamble were the worst performers in the Dow Jones index today.

Dow Jones has recently settled back above the support at 40,500 – 40,600. Currently, it is heading towards the 50 MA at 40,923. A move above the 50 MA will open the way to the test of the resistance at 41,300 – 41,400. RSI is in the moderate territory, so there is plenty of room to gain momentum in case the right catalysts emerge.

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