Nasdaq, S&P 500, Dow: Awaiting Nvidia, Walmart Earnings & Fed’s Rate Insights

By:

Arslan Ali

Published: Feb 19, 2024, 14:12 GMT+00:00

Key Points:

U.S. stock markets pause for Presidents' Day; Nvidia and Walmart earnings, Fed minutes in focus.
Chinese market recovery post-Lunar New Year boosts global economic sentiment, impacting U.S. stocks.
Fed's January meeting minutes awaited for insights on interest rate decisions amid inflation concerns.

In this article:

DOW

+0.90%

S&P 500

+0.74%

Fundamental Outlook

U.S. stock markets, including Nasdaq, S&P 500, and Dow, will remain closed on Monday for Presidents’ Day, with investors looking forward to significant quarterly earnings from Nvidia and Walmart and the Federal Reserve’s January meeting minutes. Nvidia’s potential insights into AI demand and Walmart’s consumer spending trends are highly anticipated.

The Fed’s minutes could offer clarity on interest rate decisions, influenced by persistent inflation and a strong labor market.

Additionally, Chinese markets have shown positive momentum post-Lunar New Year, signaling a recovery in consumer spending, which could impact global economic sentiments and subsequently affect U.S. stock market trends.

SPX SP500 Price Forecast

SP500 Price Chart

The S&P 500 (SPX)’s pivot point stands around 5017.70. Looking ahead, the SPX confronts immediate resistance at 5043.60, with subsequent hurdles at 5073.20 and 5101.63, potentially challenging any attempts at recovery.

Conversely, support levels are identified at 4995.72, followed by 4943.00 and 4919.17, which could offer a foothold for the index in the face of further declines.

Technical indicators, including a 50-Day EMA of 4917.04 and a 200-Day EMA of 4676.10, suggest underlying market strength, yet the current stance remains bearish below the pivot point.

Dow Price Forecast

Dow Jones Price Chart

The Dow Jones Industrial Average (DJIA) navigates a complex market landscape, finding its pivot at $38,588.89. Today’s analysis highlights critical resistance levels awaiting at $38,826.88, $38,932.19, and $39,059.24, delineating potential barriers to upward momentum.

On the flip side, support levels at $38,467.75, $38,333.69, and $38,192.80 offer crucial cushions against declines, suggesting areas where buying interest could reignite.

Technical indicators, including a 50-Day Exponential Moving Average of $38,558.81 and a 200-Day at $38,023.27, underscore the DOW’s resilience and underlying strength.

This technical outlook posits a bullish trend above the pivot, signaling optimistic market sentiment as long as the index remains above this threshold, inviting a strategic approach to navigating near-term market dynamics.

NASDAQ Price Forecast

NASDAQ Price Chart

The NASDAQ Composite Index, a barometer for tech-driven market sentiments, hovers around a pivotal junction at $15,915.11. With immediate resistance levels mapped at $16,086.68, $16,245.52, and $16,370.72, the index faces a steep path to reclaim bullish momentum.

Conversely, the support framework is established at $15,685.94, $15,554.99, and $15,424.04, delineating potential fallback positions in the event of a downturn.

Notably, the 50-Day and 200-Day Exponential Moving Averages, positioned at $15,514.96 and $14,630.87 respectively, underscore a latent bullish undertone despite the immediate bearish bias below the pivot point.

This analytical stance suggests a cautiously optimistic outlook for the NASDAQ, contingent upon its ability to sustain above these critical technical levels.

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

About the Author

Arslan Aliauthor

Arslan is a finance MBA and also holds an MPhil degree in behavioral finance. An expert in financial analysis and investor psychology, Arslan uses his academic background to bring valuable insights about market sentiment and whether instruments are likely to be overbought or oversold.

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