NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Gains Ground As Core Inflation Rate Declines

Key Insights

• SP500 moves higher as traders react to inflation data.
• NASDAQ gains ground as demand for tech stocks remains strong. 
• Dow Jones pulls back as 3M Company stock drops 6%. 

SP500

SP500 gains ground as traders react to U.S. inflation reports. Inflation Rate increased from 3.2% in July to 3.7% in August, compared to analyst consensus of 3.6%. Core Inflation Rate declined from 4.7% to 4.3%, in line with the analyst consensus. Treasury yields have moved lower after the release of the inflation reports as traders focused on the declining Core Inflation Rate and ignored the rising Inflation Rate. The pullback in Treasury yields provided support to SP500. However, the move was not strong as traders remained cautious ahead of the next week’s Fed meeting.

The technical picture remains unchanged. SP500 has recently failed to settle above the 4500 level but receives strong support in the 4430 – 4450 range.

NASDAQ

NASDAQ gains ground as demand for tech stocks remains strong. The pullback in Treasury yields provided material support to the NASDAQ index. However, it remains to be seen whether NASDAQ will be able to gain sustainable upside momentum.

The support at 15,200 – 15,300 has once again proved its strength. In case NASDAQ settles below the 15,200 level, it may gain strong downside momentum and head towards the support at 14,560 – 14,680.

Dow Jones

Dow Jones is losing some ground in today’s trading session. 3M Company, which is down by almost 6%, is the worst performer in the Dow Jones index. The stock found itself under strong pressure after 3M warned about slow growth environment in 2024.

If Dow Jones settles below the 34,500 level, it will head towards the support at 33,600 – 33,700.

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