NASDAQ Index, SP500, Dow Jones Forecasts – Stocks Rebound From Session Lows As Trump Says He’ll Talk To Xi

SP500

SP500 rebounded from session lows as Donald Trump said that he would talk to China’s Xi Jinping. Earlier, Trump accused China of breaching the trade deal. Today, traders also focused on economic reports. PCE Price Index increased by +2.1% year-over-year in April, compared to analyst forecast of +2.2%. Michigan Consumer Sentiment remained unchanged at 52.2 in May, while analysts expected that it would drop to 51. Personal Spending increased by +0.2% month-over-month in April, meeting analyst estimtes. Personal Income increased by +0.8%, compared to analyst forecast of +0.3%. Treasury yields tested new lows. The yield of 2-year Treasuries pulled back towards the 3.90% level, while the yield of 10-year Treasuries made an attempt to settle below 4.40%. However, this move did not provide material support to stocks as traders have mostly focused on Trump’s comments regarding U.S. – China trade deal.

The nearest resistance level for SP500 is located in the 5910 – 5920 range. A move above the 5920 level will push SP500 towards the next resistance at 6000 – 6010.

NASDAQ

NASDAQ has also managed to rebound from session lows, supported by Trump’s comments on potential negotiations with Xi. Regeneron, which was down by 18.7%, was the worst performer in the NASDAQ index today. The stock found itself under strong pressure as its drug Itepekimab delivered mixed results in late-stage studies.

If NASDAQ climbs back above the 50 MA at 21,264, it will move towards the resistance level at 21,450 – 21,500.

Dow Jones

Dow Jones gained some ground, supported by rising demand for consumer defensive and healthcare stocks.

In case Dow Jones settles above the 42,400 level, it will head towards the resistance level at 42,700 – 42,800. On the support side, a move below the support at 42,000 – 42,100 will open the way to the test of the next support level at 41,500 – 41,600.

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