NASDAQ Index, SP500, Dow Jones Forecasts – SP500 And NASDAQ Test Historic Highs After Non Farm Payrolls Report

SP500

SP500 gains ground as traders react to the Non Farm Payrolls report, which indicated that U.S. economy added 206,000 jobs in June, compared to analyst consensus of 190,000. The previous report was revised from 272,000 to 218,000. Unemployment Rate increased from 4% in May to 4.1% in June, while analysts expected that it would remain unchanged at 4%. Treasury yields pulled back as bond traders bet on a less hawkish Fed after the release of job market data. The yield of 2-year Treasuries pulled back towards the 4.60% level, while the yield of 10-year Treasuries settled near 4.28%. Falling Treasury yields provided significant support to SP500 as Fed policy outlook remains an important catalyst for stocks. Most market segments moved higher today, but energy stocks found themselves under pressure due to pullbacks in the oil and natural gas markets.

SP500 settled above the resistance at 5520 – 5530 and climbed above the 5550 level. RSI is in the overbought territory but remains below highs seen back in June, so SP500 has a decent chance to test the 5600 level in the near term.

NASDAQ

NASDAQ tests historic highs as demand for tech stocks stays strong amid falling Treasury yields. Arm Holdings and Advanced Micro Devices are the biggest gainers in the NASDAQ index today as traders stay focused on AI-related companies.

The technical picture is bullish as NASDAQ settled above the resistance at 20,000 – 20,100. However, RSI is in the extremely overbought territory, so the risks of a pullback are increasing.

Dow Jones

Dow Jones moved higher but did not manage to gain strong momentum. Chevron, which was down by 1.7%, was the worst performer in the Dow Jones index today. From a big picture point of view, traders prefer tech stocks, which is somewhat bearish for Dow Jones.

In case Dow Jones manages to settle above the 39,400 level, it will move towards the nearest resistance level, which is located in the 39,700 – 39,800 range.

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