NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Rallies 10% As Tesla Soars 20%

SP500

SP500 soared as traders reacted to tariff news. U.S. President Donald Trump paused tariffs for 90 days for non-retaliating countries. At the same time, he raised China tariffs to 125%. Earlier, China raised its tariffs on U.S. goods to 84%. Traders enjoyed a massive rally after the tariff decision was announced. Analysts rushed to rescind their recession forecasts. At this point, it looks that a trade war with the whole world is turning into a trade war with China. The latter has previously promised to “fight to the end”, although it remains to be seen whether China will maintain its previous tariff strategy at a time when other countries normalize their trade relations with the U.S.

The rally was fast and extremely strong, so traders have already started to take some profits off the table. If SP500 settles above the resistance at 5390 – 5400, it will head towards the next resistance level at 5510 – 5520. RSI remains in the moderate territory, so there is plenty of room to gain additional upside momentum in the near term.

NASDAQ

NASDAQ rallied as traders rushed to buy the beaten tech stocks. Tesla, which was up by 20%, was among the biggest gainers in the NASDAQ index today.

The nearest support level for NASDAQ is located in the 18,500 – 18,550 range. If NASDAQ declines below the 18,500 level, traders may rush to take profits off the table.

Dow Jones

Dow Jones gained strong upside momentum amid major rally in the equity markets. NVIDIA gained 15% amid strong demand for tech stocks.

From the technical point of view, Dow Jones faced resistance near the 40,500 level and has started to pull back. A move below the 40,000 level will provide Dow Jones with a chance to gain downside momentum in the near term.

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