NASDAQ Index, SP500, Dow Jones Forecasts – Stocks Rebound From Session Lows As Traders Calm Down

By:

Vladimir Zernov

Published: Oct 1, 2024, 19:05 GMT+00:00

Key Points:

SP500 failed to settle below the 5700 level and moved towards the 5740 level.
NASDAQ was under pressure as appetite for risk declined.
Dow Jones climbed back above the 42,200 level amid rising demand for defensive stocks.

SP500

SP500 011024 4h Chart

SP500 rebounded from session lows as traders remained focused on the situation in the Middle East. Israel noted that it intercepted most Iranian missiles, and traders are trying to evaluate whether Iran’s attack will lead to a major war. At this point, the markets have calmed down, and oil prices have pulled back from session highs. Today, traders also focused on economic reports. JOLTs Job Openings increased from 7.71 million in July to 8.04 million in August, compared to analyst forecast of 7.65 million. ISM Manufacturing PMI remained unchanged at 47.2 in September, compared to analyst consensus of 47.5. S&P Global Manufacturing PMI decreased from 47.9 in August to 47.3 in September. Numbers below 50 show contraction. Overall, PMI reports showed that the manufacturing sector remained under pressure.

SP500 did not manage to settle below the 5700 level and rebounded towards the resistance at 5735 – 5750. A move above the 5750 level will provide SP500 with an opportunity to gain additional upside momentum.

NASDAQ

NASDAQ 011024 4h Chart

NASDAQ is losing ground amid geopolitical tensions. Apple, Intel, and NVIDIA were among the biggest losers in the NASDAQ index today. The appetite for risk declined, which was bearish for tech stocks.

If NASDAQ manages to settle back above the 19,900 level, it will move towards the nearest resistance at 20,000 – 20,100. On the support side, a move below 19,700 will push NASDAQ towards the support at 19,500 – 19,600.

Dow Jones

Dow Jones 011024 4h Chart

Dow Jones rebounded from session lows, supported by rising demand for stocks from defensive sectors.

RSI is in the moderate territory, so there is plenty of room to gain additional upside momentum. In case Dow Jones stays above the 42,200 level, it will head towards historic highs above the 42,600 level. On the support side, a move below 41,800 will open the way to the test of the support level at 41,300 – 41,400.

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

About the Author

Vladimir Zernovauthor

In more than 15 years of trading in the financial markets, Vladimir dealt with a wide range of brokers and financial instruments. His career as a day-trader at a proprietary trading firm goes back to 2007. Later, Vladimir turned to longer time frames and became an independent trader and analyst managing his own portfolio. Using his experience, he helps traders find the best broker in his reviews.