NASDAQ Index, SP500, Dow Jones Forecasts – Stocks Gains Ground As Traders Focus On PCE Price Index Data

SP500

SP500 gains ground as traders focus on the PCE Price Index report for July. The report showed that PCE Price Index increased by 0.2% month-over-month, in line with analyst expectations. Personal Income increased by 0.3% on a month-over-month basis, while Personal Spending grew by 0.5%. The final reading of Michigan Consumer Sentiment report showed that Consumer Sentiment improved from 66.4 in July to 67.9 in August. Chicago PMI increased from 45.3 in July to 46.1 in August. Overall, the reports showed that U.S. economy remained in decent shape, while inflation was under control. Traders continue to prepare for the start of the rate cut cycle, but it remains to be seen whether SP500 will test new highs ahead of Fed meeting and Powell’s comments.

From the technical point of view, SP500 remains stuck between the support at 5550 – 5570 and the resistance at 5660 – 5675. RSI is in the moderate territory, so there is plenty of room to gain momentum.

NASDAQ

NASDAQ gained ground as demand for tech stocks increased. MongoDB was the best performer in the NASDAQ index today. The stock gained 17.2% as traders reacted to the better-than-expected earnings report.

In case NASDAQ moves back above the 19,600 level, it will head towards the next resistance at 20,100 – 20,200.

Dow Jones

Dow Jones is mostly flat despite the strong rally in Intel stock, which is up by 8.7%. Intel is moving higher as traders focus on a report indicating that the company could sell its foundry business.

Dow Jones remains stuck near the key resistance level at 41,300 – 41,400. In case Dow Jones settles above the 41,400 level, it will gain additional upside momentum and move towards the 42,000 level. On the support side, a move below the 50 MA at 41,106 will push Dow Jones towards the support at 40,500 – 40,600.

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