NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Rallies As NVIDIA Tests New Highs

Key Insights

• SP500 moved higher as Consumer Inflation Expectations declined. 
• NASDAQ rallied amid rising demand for AI-related stocks. 
• Dow Jones was mostly flat as Boeing was down by 7.5% after another incident involving 737 MAX 9.

SP500

SP500 gains ground as traders react to Consumer Inflation Expectations report, which indicated that inflation expectations declined from 3.4% in November to 3% in December. Inflation expectations settled at the lowest level since January 2021 and are moving towards Fed’s 2% inflation target. Treasury yields were moving lower today as bond traders increased their bets on a dovish Fed. Falling yields provided material support to SP500, which managed to gain strong momentum at the start of the week. The rally was led by Technology and the yield-sensitive Real Estate stocks. Energy stocks were the only notable losers in today’s trading session, which was not surprising as WTI oil was down by almost 5%. Saudi Arabia cut prices for February delivery for all customers, and oil traders rushed to exit their long positions.

Currently, SP500 is trying to settle above the resistance at 4730 – 4750. In case this attempt is successful, SP500 will move towards the 4800 level.

NASDAQ

NASDAQ rallied amid rising demand for tech stocks. The rally was led by Advanced Micro Devices and NVIDIA, which were up by about 5%. Traders stay ready to bet on the leading AI-related stocks, which is bullish for NASDAQ index.

NASDAQ has recently moved above the resistance at 16,400 – 16,500. In case NASDAQ stays above the 16,500 level, it will head towards the next resistance, which is located in the 16,750 – 16,800 range.

Dow Jones

Dow Jones‘ performance was hurt by the strong sell-off in Boeing stock. Boeing is down by 7.5% as FAA grounded 737 MAX 9 jets after an Alaska Airlines plane experienced an explosive decompression.

Dow Jones is trying to settle above the resistance at 37,400 – 37,500 despite Boeing’s problems. In case this attempt is successful, it will head towards the recent highs near the 37,800 level.

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