NASDAQ Index, SP500, Dow Jones Forecasts – Stocks Rally On Dovish Fed

SP500

SP500 rallied as traders reacted to Fed Interest Rate Decision and Powell’s comments. The Fed decided to leave the rate unchanged at 4.5%, in line with analyst consensus. The central bank has made changes to economic projections. GDP growth projection for 2025 was changed from 2.1% to 1.7%. Treasury secretary Bessent has been recently asked about a potential recession, but Fed’s projections show that the central bank expects healthy growth in 2025 and beyond. PCE inflation projection for 2025 was increased from 2.5% to 2.7%, while Core PCE inflation projection grew from 2.5% to 2.8%. Powell noted that tariffs may delay inflation progress, but the base case scenario implies that any inflation growth would be temporary. He added that long-run inflation expectations were at normal levels and that Fed will monitor them. Interestingly, Powell also said that Fed may be more dovish if the labor market shows signs of weakness. Today’s rally was broad, and most market sectors moved higher. Healthcare and consumer defensive stocks were mostly flat as demand for defensive sectors declined.

In case SP500 climbs above the resistance at 5700 – 5710, it will head towards the next resistance level at 5800 – 5810. RSI is in the moderate territory, and there is plenty of room to gain additional momentum in the near term.

NASDAQ

NASDAQ gained strong upside momentum as traders focused on Powell’s comments. Strategy, which is up by 9%, is the best performer in the NASDAQ index today. The stock rallied as Bitcoin climbed back above the $85,000 level.

If NASDAQ settles above the 19,800 level, it will move towards the nearest resistance at 19,950 – 20,000.

Dow Jones

Dow Jones is moving higher amid broad rally in the equity markets. The rally is led by Boeing, whis is up by 7.2% in today’s trading session. The stock enjoyed strong support as the company’s CFO projected lower cash burn in the first quarter.

A move above the 42,000 level will open the way to the test of the next resistance level at 42,500 – 42,600.

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