NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Moves Higher As AI-Driven Rally Continues

By:

Vladimir Zernov

Published: Jan 9, 2024, 19:11 GMT+00:00

NVIDIA tests historic highs as traders focus on AI-related stocks.

NASDAQ Index, SP500, Dow Jones Forecasts

Key Insights

SP500 moved towards 4770, supported by rising demand for tech stocks.
NASDAQ gained ground as NVIDIA tested new highs.
Dow Jones was under pressure as the majority of the index components moved lower.

SP500

SP500 090124 4h Chart

SP500 rebounded from session lows and moved towards the 4770 level. NVIDIA and Advanced Micro Devices were among the biggest gainers in SP500 today as traders remained focused on AI-related stocks. Juniper Networks gained 22% amid reports about merger talks with HPE. Meanwhile, HPE stock lost 8% in today’s trading session. From a big picture point of view, traders are waiting for inflation data, which will be released on Thursday. The general market sentiment remains bullish as traders quickly bought the recent pullback, which was driven by profit-taking.

In case SP500 settles above the 4770 level, it will head towards the recent highs near the 4800 level. RSI remains in the moderate territory, so there is plenty of room to gain additional upside momentum.

NASDAQ

NASDAQ 090124 4h Chart

NASDAQ gains ground amid rising demand for AI-related stocks. Traders bet that AI will change many industries in this decade, boosting profits of the leading tech companies.

From the technical point of view, NASDAQ settled above the previous resistance at 16,400 – 16,500 and is moving towards the next resistance level, which is located in the 16,750 – 16,800 range.

Dow Jones

Dow Jones 090124 4h Chart

Dow Jones continued its attempts to settle above the nearest resistance at 37,400 – 37,500. However, these attempts were not successful as the majority of Dow Jones components moved lower in today’s trading session. Interestingly, Boeing was down by just 0.4% today as some traders were ready to buy the stock after yesterday’s sell-off, which was triggered by the 737 MAX 9 incident.

Dow Jones needs to settle above the 37,500 level to have a chance to gain upside momentum in the near term.

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

About the Author

Vladimir Zernovauthor

Vladimir is an independent trader, with over 18 years of experience in the financial markets. His expertise spans a wide range of instruments like stocks, futures, forex, indices, and commodities, forecasting both long-term and short-term market movements.