NASDAQ Index, SP500, Dow Jones Forecasts – Stocks Move Higher As Inflation Rate Drops To 3.1%

Key Insights

• SP500 settled near 4640 as traders focused on inflation reports, which met analyst estimates. 
• NASDAQ is moving higher as demand for tech stocks stays strong. 
• Dow Jones continues its attempts to settle above the resistance at 36,350 – 36,500.

SP500

SP500 gains ground as traders react to U.S. inflation reports. Inflation Rate declined from 3.2% in October to 3.1% in November, compared to analyst consensus of 3.1%. Core Inflation Rate remained unchanged, in line with analyst expectations. Stocks moved away from session highs after the release of the reports as traders wanted to see a stronger pullback in inflation. However, demand for stocks remains strong, and SP500 moved back towards the 4640 level. The market sentiment is bullish. Near-term dynamics of major indices will depend on the Fed decision and commentary, which will be released tomorrow.

From the technical point of view, SP500 settled above the resistance at 4575 – 4600 and is moving towards the next resistance level at 4730 – 4750.

NASDAQ

NASDAQ gains ground as demand for tech stocks stays strong after the release of CPI data. There are no big gainers in the NASDAQ index today, but the majority of components are moving higher.

Traders should note that RSI is already close to the extremely overbought territory, so the risks of a pullback are increasing.

Dow Jones

Dow Jones tests resistance at 36,350 – 36,500 as traders prepare for tomorrow’s Fed decision. Chevron, which is down by 1.5%, is the biggest loser in the Dow Jones index today. The stock is under pressure as traders react to the strong sell-off in the oil markets.

RSI has recently moved back into the overbought territory, but there is enough room to gain additional upside momentum.

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