NASDAQ Index, SP500, Dow Jones Forecasts – Stocks Gain Ground As Initial Jobless Claims Rise

SP500

SP500 gains ground as traders react to the Initial Jobless Claims report, which showed that 231,000 Americans filed for unemployment benefits in a week. Analysts expected that Initial Jobless Claims would increase from 208,000 to 210,000, so the report missed expectations. Treasury yields moved lower as bond traders bet that the potential slowdown in the job market could force the Fed to be more dovish than previously expected. The yield of 2-year Treasuries pulled back towards 4.80%, while the yield of 10-year Treasuries settled near 4.45%, providing additional support to SP500. Today’s move was broad, and most market segments gained solid upside momentum.

SP500 has recently moved above the resistance at 5180 – 5190 and is trying to climb above the 5215 level. In case this attempt is successful, SP500 will head towards the next resistance at 5270 – 5280.

NASDAQ

NASDAQ has also moved higher, although traders continued to take profits in AI-related stocks like NVIDIA, Advanced Micro Devices, and Micron. Tesla, which is down by 1.4%, is also losing ground in today’s trading session.

If NASDAQ settles above the 18,200 level, it will get to the test of the nearest resistance at 18,300 – 18,400. RSI is close to the overbought territory, but there is enough room to gain additional upside momentum.

Dow Jones

Dow Jones tests new highs as most components of the index gain ground in today’s trading session. IBM, which is down by 1.9%, is the only notable loser in the Dow Jones index today.

From the technical point of view, Dow Jones settled above the resistance at 39,000 – 39,100 and is moving towards the next resistance level at 39,900 – 40,000. Traders should note that RSI is in the extremely overbought territory, so the risks of a pullback are increasing.

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