NASDAQ Index, SP500, Dow Jones Forecasts – Stocks Mixed After Strong Non Farm Payrolls Report

SP500

SP500 is swinging between gains and losses as traders react to the better-than-expected Non Farm Payrolls report. The report indicated that U.S. economy added 272,000 jobs in May, compared to analyst consensus of 185,000. Unemployment Rate increased from 3.9% in April to 4% in May, while analysts expected that it would remain unchanged at 3.9%. Treasury yields rallied as bond traders bet on hawkish Fed. The yield of 2-year Treasuries moved towards the 4.90% level, while the yield of 10-year Treasuries settled above 4.40%. FedWatch Tool indicates that markets expect just one rate cut in 2024. Interestingly, rising Treasury yields did not put material pressure on SP500 as traders focused on the strength of the U.S. economy. Basic materials stocks were among the biggest losers today as traders react to the strong sell-off in precious metals markets.

The technical picture remains unchanged as SP500 did not manage to settle above the 5360 level. Meanwhile, the nearest support level at 5320 – 5330 has proven its strength.

NASDAQ

NASDAQ is losing some ground as traders take profits off the table near historic highs. Rising Treasury yields did not trigger a sell-off as general market sentiment remains extremely bullish. Traders are focused on the potential of the new technology and are ready to buy AI-related stocks at pullbacks.

RSI has recently moved away from the overbought territory, so there is plenty of room to gain additional upside momentum in the upcoming trading sessions.

Dow Jones

Dow Jones pulls back as demand for consumer defensive and consumer cyclical stocks declines.  From a big picture point of view, the trading session is calm, despite the release of the important job market data.

If Dow Jones settles below the 38,800 level, it will head towards the nearest support at 38,500 – 38,550.

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