NASDAQ Index, SP500, Dow Jones Forecasts – Nvidia’s 5% Surge Lifts Technology Sector

S&P 500

The S&P 500 saw mixed results on Tuesday, with only two of its 11 sectors gaining ground. Technology stocks led the charge, with Nvidia soaring over 5% and the communication services index boosted by Alphabet and Meta Platforms. However, real estate and materials sectors dragged the index down, declining 1.3% and 1.2%, respectively. The market’s focus remains on positioning ahead of the critical PCE price index data due later this week.

The Nasdaq Composite rose 1% on Tuesday, driven by a strong performance in tech megacaps. Nvidia surged more than 5% after a brief sell-off, bolstering the broader chip sector and helping the Philadelphia Semiconductor index climb 1.6%. Despite recent volatility, investors shifted back into technology stocks, which had been lagging. The index recorded 39 new highs and 146 new lows, with tech giants such as Alphabet and Meta Platforms contributing significantly to the gains.

The Dow Jones Industrial Average slipped on Tuesday, retreating from its recent one-month high. Home improvement retailer Home Depot led the declines, falling 3.8%, while Walmart also dropped 2.8% following cautious remarks from its CFO. Additionally, the Dow Jones Transport Average fell 1.3%, weighed down by Norfolk Southern and FedEx ahead of its earnings report. Investors are eyeing Friday’s personal consumption expenditures (PCE) price index for further clues on U.S. inflation.

The Dow Jones Industrial Average is showing support at 39144.87 to 39,006 and resistance at 39,702 to 39805.97. The 50-period moving average is at 38,925, indicating a slight uptrend. The RSI is at 48.84, suggesting neutral momentum. The overall trend is based on recent price action and technical indicators, showing consolidation at support after recent gains. We’ll find out whether the recent rally was legit by how traders react to the 50-period MA.