NASDAQ Index, SP500, Dow Jones Forecasts – Traders Stay Bullish As Fed Keeps Rates Unchanged

SP500

SP500 settled near the 5530 level as traders reacted to Fed Interest Rate Decision. The central bank left the federal funds rate unchanged, in line with analyst estimates. Importantly, the Fed noted that there has been some further progress towards the 2% inflation target in recent months. Today, traders also had a chance to take a look at ADP Employment Change report. The report showed that private businesses added 122,000 jobs in July, compared to analyst consensus of 150,000. Pending Home Sales increased by 4.8% month-over-month in July, while analysts expected that they would grow by 1.5%.

Currently, SP500 is trying to settle above the resistance at 5520 – 5530. In case this attempt is successful, it will head towards the next resistance level at 5585 – 5600.

NASDAQ

NASDAQ gains ground amid rising demand for tech stocks. NVIDIA is up by 11.4% after an upgrade from Morgan Stanley, which labeled the stock as a “top pick”. Morgan Stanley believes the the recent pullback in NVIDIA shares presents a buying opportunity.

If NASDAQ settles above the 50 MA at 19,263, it will head towards the nearest resistance level, which is located in the 19,600 – 19,650 range.

Dow Jones

Dow Jones tests new highs amid broad rally in the equity markets. Boeing, which is up by 4.2% today, is the best performer in the Dow Jones index today. The stock gained strong momentum as traders reacted to Boeing’s earnings report. In addition, the company named new CEO, and traders hope that he will be able to improve Boeing’s performance.

From the technical point of view, Dow Jones is moving towards the resistance at 41,300 – 41,400. Traders should note that the market may be sensitive to Powell’s comments during the press conference, which starts soon.

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