NASDAQ Index, SP500, Dow Jones Forecasts

This week, we’re looking at some possible trade opportunities. On Friday, the S&P 500 dropped as Nvidia’s stock fell for the second day in a row, pulling the index below 5500. The NASDAQ faced pressure due to profit-taking in tech stocks. Meanwhile, the Dow Jones moved above the 39,000 – 39,100 resistance level. The S&P 500 fell by 0.16%, closing at 5,464.62, and the NASDAQ Composite dropped by 0.18% to 17,689.36. The Dow Jones Industrial Average went up slightly by 15.57 points, or 0.04%, ending at 39,150.33.

This week, the focus will be on important economic developments, like the durable goods report on Thursday and the core PCE and University of Michigan reports on Friday. Several Fed officials will also be speaking, including Governor Waller on Monday and New York Fed President Williams on Sunday.

In this post, we’ll discuss the weekly forex forecast for the NASDAQ Index, S&P 500 Index, and Dow Jones.

NASDAQ

NASDAQ dropped as traders sold off stocks near record highs. Chip stocks like Qualcomm, Micron, and Microchip Technology led the decline. The closest support level for NASDAQ is between 19,600 and 19,650. The RSI is in a moderate range, indicating there is room for growth if the right factors come into play. If NASDAQ falls below 19,600, it could drop further to the next support level at 18,900 to 18,950.

SP500

The SP500 fell today as tech stocks dropped due to profit-taking. While most market segments saw gains, the tech stock decline weighed on the SP500. Traders reviewed the Initial Jobless Claims report, which showed 238,000 Americans filed for unemployment benefits in a week. Analysts expected 235,000 claims, so the report was slightly higher than predicted. The Philadelphia Fed Manufacturing Index dropped from 4.5 in May to 1.3 in June, below the expected 5. Building Permits fell by 3.8% in May, and Housing Starts dropped by 5.5%. 

Although these reports were worse than analysts expected, market sentiment in most segments stayed positive.

The SP500 struggled in the 5520 – 5530 range and dropped below 5500. If it goes below 5470, it will likely head towards the support level in the 5440 – 5450 range.

Dow Jones

The Dow Jones struggled to gain strong momentum because of drops in AMGEN, Boeing, and Apple stocks. Traders are selling AMGEN and Apple to take profits after their recent gains.

From a technical perspective, the Dow Jones is moving between the support level of 38,500 – 38,550 and the resistance level of 39,000 – 39,100. If the Dow Jones rises above 39,100, it will move towards the next resistance at 39,900 – 40,000. The RSI indicator is near the overbought zone, but there’s still potential for further gains if the right factors come into play.

Bottom Line

With the strong economy and growing investment in AI, we expect the S&P 500 earnings per share to increase by 11% in 2024 (to $250) and by 6% in 2025 (to $265). These estimates might even be low. Overall, we think the environment is still good for US stocks, and investors should fully invest in this asset class. Our S&P 500 targets are 5,500 by the end of the year and 5,600 by June 2025.

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