NASDAQ Index, SP500, Dow Jones Forecasts – Stocks Gain Ground As Oil Prices Plunge 7.5%

SP500

SP500 is moving higher as traders focus on the huge sell-off in the oil market, which was triggered by Iran’s strike on U.S. military base in Qatar. The strike was weak. Traders bet that Iran is not ready for additional escalation, which means that oil supply routes are safe. Dovish comments from Fed’s Bowman also provided support to SP500 in today’s trading session. She said that it was time to consider cutting the federal funds rate. Treasury yields moved lower as bond traders reacted to the comments, which was bullish for stocks. Today, traders also focused on PMI reports. Manufacturing PMI remained unchanged at 52 in June, compared to analyst forecast of 51. Services PMI declined from 53.7 in May to 53.1 in June, compared to analyst consensus of 52.9. Numbers above 50 show expansion. Not surprisingly, energy stocks were among the biggest losers in the SP500 index today. Other market sectors gained ground as traders bet on dovish Fed and reacted to the sell-off in the oil markets.

Currently, SP500 is trying to settle above the nearest resistance level at 6000 – 6010. In case this attempt is successful, it will head towards the next resistance, which is located in the 6090 – 6100 range.

NASDAQ

NASDAQ climbed above 21,800 level as Tesla gained 9.1% after launching robotaxis in Austin.

The nearest resistance level for NASDAQ is located in the 21,950 – 22,000 range. A successful test of the 22,000 level will open the way to the test of the next resistance at 22,250 – 22,300.

Dow Jones

Dow Jones has also moved higher amid rising demand for tech stocks. IBM and Microsoft were among the biggest gainers in the Dow Jones index today.

A move above the resistance at 42,700 – 42,800 will push Dow Jones towards the next resistance at 43,300 – 43,400. RSI is in the moderate territory, and there is plenty of room to gain momentum in the near term.

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