SP500 moved towards yearly highs as traders bet that Fed will not raise rates at the upcoming meeting in June. Today’s ISM Manufacturing PMI report missed expectations, highlighting the challenging situation in the manufacturing sector. Traders are also optimistic about the debt ceiling vote as Democratic Majority Leader Chuck Schumer said that the Senate would stay in session until the bill was approved. Treasury yields are moving lower as bond traders expect that U.S. will soon raise the debt ceiling. Falling Treasury yields provide additional support to stocks.
A successful test of the 4215 level will open the way to the test of the next resistance at 4250. In case SP500 climbs above 4250, it will head towards the resistance level at 4285.
R1:4215 – R2:4250 – R3:4285
S1:4200 – S2:4175 – S3:4150
NASDAQ gains ground amid a broad rally in the equity markets. Demand for tech stocks remains strong as traders bet on the AI boom. NVIDIA stock, which is up by 5%, is among the leaders in the NASDAQ index today.
If NASDAQ settles above 14,450, it will head towards the resistance at 14,600. A move above 14,600 will push NASDAQ towards the 14,800 level.
R1:14,450 – R2:14,600 – R3:14,800
S1:14,300 – S2:14,100 – S3:13,900
In case Dow Jones climbs above the resistance at 33,175, it will head towards the next resistance level, which is located at 33,300. A move above this level will push Dow Jones towards the 33,500 level.
R1:33,175 – R2:33,300 – R3:33,500
S1:33,000 – S2:32,800 – S3:32,600
For a look at all of today’s economic events, check out our economic calendar.