NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Rallies As Starbucks Gains 21.9%

SP500

SP500 tests new highs as traders react to PPI report. The report showed that PPI increased by 0.1% month-over-month in July, compared to analyst consensus of +0.2%. Core PPI remained unchanged, compared to analyst forecast of +0.2%. On a year-over-year basis, Core PPI declined from 3% in June to 2.4% in July, while analysts expected that it would drop to 2.7%. Treasury yields pulled back as bond traders bet on dovish Fed. The yield of 2-year Treasuries declined below the 3.95% level, while the yield of 10-year Treasuries pulled back towards 3.85%.  Falling Treasury yields provided additional support to SP500 and other major indices. From a big picture point of view, traders are bullish as PPI report showed that inflation was under control. It should be noted that the rally will be tested tomorrow as traders will have a chance to take a look at CPI data.

Currently, SP500 is trying to settle above the resistance at 5400 – 5420. In case this attempt is successful, it will head towards the next resistance level, which is located in the 5550 – 5570 range.

NASDAQ

NASDAQ gained strong upside momentum as traders focused on PPI data. Chip stocks were among the biggest gainers in the NASDAQ index today as demand for AI-related companies remained strong. Starbucks gained 21.9% after the company hired Chipotle’s Brian Niccol as its new CEO.

In case NASDAQ climbs above the 19,000 level, it will head towards the nearest resistance at 19,500 – 19,600.

Dow Jones

Dow Jones tests resistance at 39,700 – 39,800 amid broad rally in the equity markets. RSI remains in the moderate territory, so there is plenty of room to gain momentum.

In case Dow Jones settles above the 39,800 level, it will head towards the next resistance at 40,500 – 40,600.

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