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

SP500

SP500 gains ground as traders react to the dovish comments of Fed Chair Jerome Powell. Speaking at the Jackson Hole Symposium, Powell said that it was time to adjust Fed policy. His confidence has increased that inflation was moving towards the 2% target. He also added that Fed did not seek further cooling of labor market conditions and noted that the balance of risks has changed. Put simply, Fed is ready to start the rate cut cycle. Today, traders also had a chance to take a look at the New Home Sales report for July. The report showed that New Home Sales increased by 10.6% on a month-over-month basis, compared to analyst consensus of +1%.

SP500 managed to settle above the 5600 level and is moving towards the nearest resistance, which is located in the 5660 – 5675 range. RSI remains in the moderate territory, so there is plenty of room to gain momentum in case the right catalysts emerge. A move above 5675 will push SP500 towards the 5700 level.

NASDAQ

NASDAQ gains ground as traders focus on dovish Fed. Workday is the biggest gainer in the NASDAQ index today. The stock is up by 12.5% as traders react to the better-than-expected earnings report.

NASDAQ settled above the support at 19,500 – 19,600 and is trying to gain additional upside momentum. In case this attempt is successful, NASDAQ will head towards the next resistance level at 20,100 – 20,200.

Dow Jones

Dow Jones tests new highs amid broad rally in the equity markets. There are no significant gainers in the Dow Jones index today, but most stocks in the index are moving higher.

If Dow Jones settles above the 41,100 level, it will move 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.