NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Tests 20,000

SP500

SP500 gains ground despite rising Treasury yields. The yield of 2-year Treasuries climbed towards the 4.75% level, while the yield of 10-year Treasuries settled above 4.25%. Traders ignored rising Treasury yields and focused on the potential of AI-related stocks. Tech stocks were among the biggest gainers in the SP500 index today. Meanwhile, utilities and healthcare stocks have found themselves under pressure. Today, traders had a chance to take a look at the NY Empire State Manufacturing Index report for June. The report indicated that NY Empire State Manufacturing Index improved from -15.60 to -6.00, compared to analyst consensus of -9. From a big picture point of view, market sentiment remains extremely bullish. Traders do not worry about hawkish Fed and are afraid to miss attractive opportunities in tech stocks.

SP500 settled above the resistance at 5440 – 5450 and is moving towards the 5500 level. RSI is in the overbought territory, so the risks of a pullback are increasing.

NASDAQ

NASDAQ tests new highs amid rising demand for tech stocks. The rally is led by Autodesk, which is up by 6.9% as Starboard Value has reportedly acquired a $500 million stake in the company.

NASDAQ is trying to settle above the psychologically important 20,000 level. Traders should note that RSI is in the extremely overbought territory.

Dow Jones

Dow Jones gains ground amid broad rally in the equity markets. However, Dow Jones did not manage to gain strong momentum as traders focused on tech stocks. The pullback in healthcare stocks put some pressure on Dow Jones in today’s trading session.

If Dow Jones stays above the 50 MA at 38,736, it will move towards the next resistance level at 39,000 – 39,100.

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