NASDAQ Index, SP500, Dow Jones Forecasts – Stocks Gain Ground As Traders Bet On Dovish Fed

SP500

SP500 gains ground as traders bet on dovish Fed. Powell will speak at Jackson Hole Symposium this week, and traders bet that he will signal that Fed is ready to cut rates. The rally is broad, and all market sectors are moving higher in today’s trading session. U.S. dollar’s pullback provided additional support to major indices. Interestingly, energy stocks gained ground despite the strong sell-off in the oil markets, which indicates that traders are bullish and are ready to buy stocks from all sectors.

SP500 has recently managed to climb above the resistance at 5550 – 5570 and continues to move higher. RSI is in the overbought territory, but there is some room to gain additional upside momentum in the near term. In case SP500 climbs above the 5600 level, it will head towards the resistance at 5660 – 5675.

NASDAQ

NASDAQ managed to climb above the resistance at 19,500 – 19,600 amid rising appetite for risk. Demand for AI-related stocks stays strong. Advanced Micro Devices and NVIDIA are among the biggest gainers in the NASDAQ index today.

In case NASDAQ stays above the 19,600 level, it will head towards the next resistance level, which is located in the 20,100 – 20,200 range.

Dow Jones

Dow Jones is moving higher in quiet trading. McDonald‘s is the biggest gainer in the Dow Jones index today. The stock gained 3.3% as Evercore ISI raised the target price to $320 per share.

From the technical point of view, Dow Jones settled below the previous resistance at 40,500 – 40,600 and is moving towards the 41,000 level. In case Dow Jones manages to climb above 41,000, it will gain additional momentum and move towards the resistance at 41,300 – 41,400. RSI is in the 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.