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Price Predictions for Dow Jones, S&P 500 and Nasdaq | Invezz

All three of Wall Street’s major indexes rose on Friday after a mixed employment report fueled hopes that the Federal Reserve will move to cut interest rate hikes at upcoming meetings.

The United States added 261,000 jobs in October, beating economists’ estimate of 198,000 in the same month.

Separately, the unemployment rate climbed to 3.7% from 3.5% in September, and, according to the well-established narrative, the increase in optimism in the markets was fueled by speculation that rising unemployment could be an argument for the Fed to review its hawkish monetary policy and slowdown. increase in interest rates.

The US stock market welcomed the bad news about rising unemployment, but investors should keep in mind that the US labor market has confirmed that the economy is still on solid footing; the labor market is moving in the direction the Fed wants, and the unemployment rate is still not a concern. Ian Shepherdson, chief economist at Pantheon Macroeconomics, said:

The bottom line here is that the labor market is softening but has not yet reached the point where the data is screaming at the Fed to stop tightening rates.

The US central bank raised its key rate by 75 basis points for the fourth time in a row on Wednesday and announced its intention to continue the tightening cycle.

This was disappointing news for investors, who had hoped that the rate hike had worked well enough so far for the US central bank to start talking about slowing rate hikes.

Fed Chairman Jerome Powell said the Fed still has work to do and that upside for Wall Street’s three major indexes remains limited at the moment.

The S&P 500 rose 1.36% on Friday.

The S&P 500 (SPX) rose 1.36% on Friday to close the week at 3,770.

Data source: tradeview.com

The upside is still limited, but if the price jumps above 3900 points, the next target could be resistance at 4000 points.

Important support is at 3500 and if the price drops below this level it will be a sell signal and the path to 3300 is open.

On Friday, the DJIA rose 1.26%.

The Dow Jones Industrial Average (DJIA) rose 1.26% on Friday to close the week at 32,403.

Data source: tradeview.com

If the price jumps above 32,500 points, the next target could be resistance at 33,000 points.

The current support level is at 31,000 points, and if the price breaks this level, the next target could be 30,000 points.

The Nasdaq Composite rose 1.28% on Friday.

The Nasdaq Composite (COMP) jumped 1.28% on Friday to close the week at 10,475. Despite this, the prospect of a more aggressive monetary policy is encouraging investors to be cautious, and upside potential for the Nasdaq Composite remains limited.

Data source: tradeview.com

There is strong support for the Nasdaq Composite at 10,000 and if the price drops below that level, 9,500 could be the next target.

Conclusion

All three of Wall Street’s major indexes rose on Friday after a mixed employment report fueled hopes that the Federal Reserve will move to lower rate hikes in upcoming meetings. The market welcomed the bad news about rising unemployment and the future; the US stock market will be hypersensitive to any Fed comments.

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