NASDAQ Index, SP500, Dow Jones Forecasts – Stocks Gain Ground As Traders Prepare For Fed Rate Cut Cycle

SP500

SP500 gained ground as traders focused on Producer Prices data. PPI increased by 0.2% month-over-month in August, compared to analyst consensus of +0.1%. On a year-over-year basis, PPI declined from 2.1% in July to 1.7% in August. Core PPI grew by 0.3%, compared to analyst forecast of +0.2%. Treasury yields moved higher, but this move was not strong and did not have a material impact on stock market dynamics. The continuation of the rebound in the oil markets provided support to energy stocks. Basic materials stocks have also enjoyed strong support in today’s trading session as gold tested historic highs. It should be noted that ECB’s rate cut provided psychological support to SP500 as traders prepared for the beginning of the Fed rate cut cycle.

SP500 has recently managed to climb above the resistance at 5550 – 5570 and is trying to settle above the 5600 level. In case this attempt is successful, SP500 will head towards the next resistance, which is located in the 5660 – 5680 range.

NASDAQ

NASDAQ continues to move higher as traders stay focused on AI-related stocks. Talking about the losers in the NASDAQ index, Moderna was down by 11.7% after the company announced that it would cut $1.1 billion in R&D costs.

Currently, NASDAQ is trying to settle above the resistance at 19,500 – 19,600. In case this attempt is successful, NASDAQ will move towards the next resistance level, which is located in the 20,000 – 20,100 range. RSI has recently moved into the oversold territory, so the risks of a pullback are increasing.

Dow Jones

Dow Jones gained some ground in quiet trading. There were no material gainers or losers in the Dow Jones index today.

From the technical point of view, Dow Jones settled above the 50 MA at 40,859 and is moving towards the nearest resistance level, which is located in the 41,300 – 41,400 range.

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