NASDAQ Index, SP500, Dow Jones Forecasts – Stocks Move Towards Session Highs After FOMC Minutes

SP500

SP500 is swinging between gains and losses as traders react to FOMC Minutes and economic reports. The Minutes showed that Fed anticipated that the pace of rate cuts would slow considerably in 2025. The Fed expects that it will continue to cut rates if the economic data meets the central bank’s expectations. It should be noted that some participants believed that the policy rate was “significantly closer to its neutral value than when the Committee commenced policy easing in September”. ADP Employment Change report showed that private businesses added 122,000 jobs in December, missing the analyst forecast of 140,000. Initial Jobless Claims were lower than analysts expected. The report showed that Initial Jobless Claims decreased from 211,000 to 201,000, compared to analyst consensus of 218,000. Traders also remained focused on Trump’s tariff plans, which will likely have a major impact on global markets. Healthcare and basic materials stocks were among the leaders today, while utilities and energy stocks found themselves under pressure.

Currently, SP500 remains stuck near the support level at 5910 – 5920. If SP500 settles below the 5910 level, it will head towards the next support level, which is located in the 5830 – 5840 range.

NASDAQ

NASDAQ managed to rebound from session lows and is trying to settle back above the support at 21,150 – 21,200. Advanced Micro Devices, which is down by 4.2%, is among the biggest losers in the NASDAQ index today. The stock is moving lower after HSBC Securities downgraded AMD from Buy to Reduce with a price target of $110.

If NASDAQ settles back above the 21,200 level, it will gain additional upside momentum and move towards the 50 MA at 21,323.

Dow Jones

Dow Jones is mostly flat as traders react to the release of FOMC Minutes. Johnson & Jonhson, which is down by 3.1%, is the biggest loser in the Dow Jones index today.

From the technical point of view, Dow Jones needs to settle above the nearest resistance at 42,700 – 42,800 to gain sustainable upside momentum in the near term.

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