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

Key Insights

• SP500 moved above the 4300 level as traders focused on the strong jobs data. 
• NASDAQ rallied above 14,900 despite high Treasury yields. 
• Dow Jones rebounded towards 33,400 as traders bet on the strength of the economy. 

SP500

SP500 rallied as traders reacted to the better-than-expected Non Farm Payrolls report, which indicated that U.S. economy added 336,000 jobs in September. Analysts expected Non Farm Payrolls of 170,000, so the report has significantly exceeded analyst expectations. The first reaction to the report was negative as traders bet on a more hawkish Fed. However, markets calmed down, and stocks gained upside momentum as traders cheered the strong economy which continues to create jobs despite rising interest rates.

From the technical point of view, SP500 moved above the resistance at 4260 – 4280 and is moving towards the next resistance level, which is located in the 4335 – 4350 range.

NASDAQ

NASDAQ rallied as appetite for risk increased after the release of Non Farm Payrolls report. Treasury yields tested new highs today, but traders focused on the strength of the job market and ignored the risks of an additional rate hike from the Fed.

NASDAQ received support in the 14,560 – 14,680 range and is moving towards the nearest resistance level, which is located in the 15,200 – 15,300 range.

Dow Jones

Dow Jones gains ground amid a broad rally in the equity markets. Today’s rebound is broad, and the majority of Dow Jones components are moving higher.

The nearest resistance level for Dow Jones is located in the 33,600 – 33,700 range. A move above 33,700 will open the way to the test of the resistance at 34,300 – 34,400.

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