NASDAQ Index, SP500, Dow Jones Forecasts – Stocks Gain Ground As Commodity Markets Rally

SP500

SP500 gains ground despite the weaker-than-expected ISM Manufacturing PMI report. The report showed that ISM Manufacturing PMI decreased from 48.7 in April to 48.5 in May, compared to analyst consensus of 49.5. Numbers below 50 show contraction. Today, traders also had a chance to take a look at the final reading of S&P Global Manufacturing PMI report. The report indicated that S&P Global Manufacturing PMI increased from 50.2 to 52.0, compared to analyst forecast of 52.3. Basic materials and energy stocks were among the biggest gainers in the SP500 index today as traders focused on the strong rally in commodity markets. Industrials and real estate stocks have found themselves under pressure in today’s trading session.

Currently, SP500 is trying to settle above the resistance at 5910 – 5920. In case this attempt is successful, SP500 will move towards the next resistance level, which is located in the 6000 – 6010 range.

NASDAQ

NASDAQ is trying to settle above the resistance at 21,450 – 21,500 amid rising demand for tech stocks. Micron, Advanced Micro Devices, and Meta are among the biggest gainers in the NASDAQ index today.

If NASDAQ climbs above the 21,500 level, it will move towards the resistance level at 21,950 – 22,000. RSI remains in the moderate territory, so there is plenty of room to gain additional upside momentum in the near term.

Dow Jones

Dow Jones is mostly flat in choppy trading. The index made an attempt to settle below the support level at 42,000 – 42,100 but failed to develop sufficient momentum.

A move above the 42,400 level will open the way to the test of the nearest resistance at 42,700 – 42,800. On the support side, Dow Jones needs to settle below 42,000 to gain downside momentum and move towards the next support level at 41,500 – 41,600.

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