NASDAQ Index, SP500, Dow Jones Forecasts – SP500 Stays Volatile As Ford Dives 18%

SP500

SP500 is swinging between gains and losses as traders react to U.S. economic data and earnings reports. GDP Growth Rate increased from 1.4% to 2.8%, compared to analyst consensus of 2%. The report showed that U.S. economy remained strong despite high interest rates. Durable Goods Orders declined by 6.6% month-over-month In June, compared to analyst forecast of +0.3%. Durable Goods Orders ex Transp increased by 0.5%, exceeding the analyst consensus of +0.2%. Ford, which was down by 18%, was among the biggest losers in the SP500 index today. The stock crashed after Ford’s quarterly earnings missed analyst estimates.

SP500 continues its attempts to settle below the support at 5450 – 5465. RSI has moved back into the moderate territory, so there is plenty of room to gain additional downside momentum. If SP500 stays below the 5450 level, it will head towards the next support, which is located in the 5350 – 5370 range.

NASDAQ

NASDAQ is losing some ground in a volatile trading session. Chip stocks like Arm Holdings and Advanced Micro Devices remain under pressure as investors start to worry about valuations. Such worries present the key risk for the tech-heavy NASDAQ in the near term. As AI-related companies rush to invest to gain market share and get an edge over competiton, their short-term profits may suffer.

If NASDAQ pulls back below the 19,000 level, it will move towards the next support at 18,500 – 18,600.

Dow Jones

Dow Jones gains ground, supported by the rally in IBM shares. IBM gained 5.4% after beating analyst estimates on earnings. The company’s AI bookings exceeded analyst expectations.

From the technical point of view, Dow Jones needs to settle above the resistance at 40,300 – 40,400 to gain sustainable upside momentum. A move above 40,400 will push Dow Jones towards the 50 MA at 40,523.

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