Price Analysis

S&P 500, Nasdaq, and Dow Jones Price Prediction Following Positive US Job Report

  • The past week saw S&P 500 gaining 19%, Dow +0.8%, while Nasdaq surged 4.6%.
  • The United States added over 372K jobs last month (June).
  • The unemployment rate stayed unchanged at around 3.6%.

Wall Street’s three primary indexes gained last week even with the Fed highlighting another 75 basis point hike. Nevertheless, market players cheered that the Federal refrained from suggesting a 100bp rate surge or further aggressive financial measures.

Fed officials admitted that high inflation warrants interest rate hikes and confirmed adopting a more restrictive stance if inflation escalates.

On the other hand, the United States job market affirmed that the nation’s economy was solid, with non-farm payrolls exceeding expectations in June. The United States released the NFP data on Friday, which confirmed the US added 372,000 jobs over the past month.

The job data beat the experts’ June approximation of 268K jobs. Moreover, James Bullard of the Fed of St. Louis stated that the labor sector is steady and will continue expanding throughout 2022. Bullard believes that it remains logical for a 75 basis points rate hike during the policy-setting committee later in the month.

Meanwhile, the unemployment rate was unaltered at 3.6%, whereas the labor force rate declined to 62.2%. Despite that, multiple financial institutions have pessimistically reviewed the United States’ growth.

For instance, Wells Fargo and JPMorgan trust the economy will grow slower than previously thought. Also, the Fed officials view deteriorated economic growth, though they reduced the likelihood of a recession.

This trading week will remain busy, with the US publishing June’s retail sales and inflation figures. Analysts expect the CPI to have surged to 8.7% Y/Y, from May’s 8.6%. Moreover, they anticipate retail sales to revive following declines over the past month.

  • S&P 500 Gains 1.9%

The week saw S&P 500 gaining 1.9% to close at 3,899 pts. The support level hovers at 3,800 points, and declines beneath this mark will reveal a sell sign, opening the path to 3,700 pts. Upside possibilities remain limited, but a price jump beyond 4,000 pts would place 4,200 pts as the next target.

  • DJIA 0.8% Up

The Dow Jones surged 0.8% to end the week at 31,338 pts. The immediate resistance stays at 32,000 pts. Moving beyond it will open the road to 32,300 pts. Meanwhile, prices slumping beneath 31,00 pts would confirm a steady sell sign, triggering declines to 30,500 points.

  • NASDAQ Composite 4.6% Up

The week has Nasdaq (COMP) booking a 4.6% surge to close at 11,635 pts. A crucial resistance stands near 12,000 pts. A move past this mark will trigger uptrends to 12,500 pts. Massive support lies at 11,000 pts, and beneath it will open the gates to 10,500 pts.

Final Thought

The Nasdaq, S&P 500, and Dow Jones gained last week as the United States announced better than expected June job report. This trading week remains busy as the US will reveal June’s retail sales and inflation numbers.

Related Articles

EconomyPrice Analysis

ECB Policymakers Consider a Mild Rate Increase

Preliminary conversations indicate a shortage of enthusiasm for a subsequent hike of...

EconomyPrice AnalysisStocks

US Stock Futures Surge As Decreasing Inflation Energizes Bulls

On Wednesday, the Dow Jones Industrial Average DJIA, +0.18%, increased 55 points,...

EconomyPrice AnalysisStocks

Barclays Lowers Its Projection for 2023, Predicts the Worst Expansion in Four Decades

Barclays issued a warning stating 2023 is expected to be among the...

EconomyPrice AnalysisStocks

Indian Stocks – Nifty and LIC Open Higher in Anticipation of Inflation Data

Domestic benchmarks were relatively flat on Monday, 14th November 2022, as investors...