NASDAQ Index, SP500, Dow Jones Forecasts – SP500 Tests Historic Highs On Soft PPI Data
FedWatch Tool indicates that there is a 65.4% probability that Fed will keep rates unchanged at the next meeting in September. Expectations of a less hawkish Fed provide additional support to SP500.
Today, traders also had a chance to take a look at the Initial Jobless Claims report. The report indicated that 209,000 Americans filed for unemployment benefits in a week, compared to analyst forecast of 202,000.
Tech stocks were among the biggest gainers in the SP500 index today. Real estate stocks have also gained strong upside momentum as traders focused on falling Treasury yields.
Basic materials stocks found themselves under strong pressure as traders reacted to the pullback in precious metals markets. Healthcare stocks have also moved lower amid falling demand for safe-haven assets.
Currently, SP500 is trying to settle above the resistance level at 7790 – 7800. In case this attempt is successful, SP500 will move towards the 7850 level. RSI has recently moved into overbought territory, but there is enough room to gain additional upside momentum in the near term.