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NASDAQ Index, SP500, Dow Jones Forecasts – Stocks Rebound After Yesterday’s Sell-Off

Published: Dec 19, 2024, 19:30 GMT+00:00

Key Points:

  • SP500 moved higher, supported by the strong GDP Growth Rate report.
  • NASDAQ gained some ground despite the strong sell-off in Micron stock.
  • Dow Jones climbed above the 42,500 level as Boeing gained 3.1%.
NASDAQ Index, SP500, Dow Jones Forecasts

In this article:

SP500

SP500
SP500 191224 4h Chart

SP500 moved away from recent lows as traders reacted to the better-than-expected GDP Growth Rate report. The report indicated that GDP Growth Rate was 3.1% in the third quarter, compared to analyst forecast of 2.8%. Initial Jobless Claims report showed that 220,000 Americans filed for unemployment benefits in a week, compared to analyst consensus of 230,000. Today, traders also had a chance to take a look at the Existing Home Sales report for November. The report showed that Existing Home Sales increased by 4.8%, exceeding analyst expectations. Strong economic data provided support to stocks, although it remains to be seen whether traders will focus on the strength of the U.S. economy in the upcoming trading sessions. The solid performance of the economy is the key reason why Fed is more hawkish than previously expected, and Fed policy outlook may serve as the key driver for markets in the near term.

In case SP500 stays above the nearest support at 5910 – 5920, it will move towards the resistance level, which is located in the 5980 – 5990 range.

NASDAQ

NASDAQ
NASDAQ 191224 4h Chart

NASDAQ gained some ground after the strong sell-off, which was triggered by changes in Fed economic projections. Micron, which is down by 16.6%, is the worst performer in the NASDAQ index today. The stock suffered a sell-off after the company cut outlook. Analysts rushed to downgrade the stock, putting additional pressure on Micron.

In case NASDAQ manages to settle above the 21,400 level, it will head towards the nearest resistance level at 21,600 – 21,650.

Dow Jones

Dow Jones
Dow Jones 191224 4h Chart

Dow Jones moved higher amid rebound in the equity markets. Dow Jones’ rebound was led by Boeing, which was up by 3.1% in today’s trading session.

The nearest resistance level for Dow Jones is located in the 42,700 – 42,800 range. A move above the 42,800 level will open the way to the test of the next resistance level at 43,200 – 43,300.

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

About the Author

Vladimir is an independent trader and analyst with over 10 years of experience in the financial markets. He is a specialist in stocks, futures, Forex, indices, and commodities areas using long-term positional trading and swing trading.



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