The NASDAQ 100, S&P 500, and Dow Jones Industrial Average (DJIA) are three of the most prominent stock market indices, each representing a key aspect of the U.S. economy and its broader stock market. Understanding their forecasts provides insight into the potential direction of markets, driven by various economic factors such as corporate earnings, inflation rates, interest rates, geopolitical events, and investor sentiment.
 

Key points:

1.       The S&P 500 pulled back from its session highs as traders opted to lock in profits following a robust Retail Sales report.
2.       The NASDAQ edged higher, supported by strong demand for AI-related stocks.
3.       The Dow Jones hit new highs, driven by an 8.9% surge in Travelers Companies' stock.

 

SP500

The S&P 500 retreated from its session highs as traders took profits following the release of a stronger-than-expected Retail Sales report. Retail Sales rose 0.4% month-over-month in September, beating the analyst forecast of 0.3%. Additionally, traders reviewed the Industrial Production report, which showed a 0.3% month-over-month decline for September. Meanwhile, the Philadelphia Fed Manufacturing Index increased from 1.7 in September to 10.3 in October, surpassing expectations of 3. The NAHB Housing Market Index also improved, rising from 41 in September to 43 in October.

With the S&P 500 hovering near historic highs, traders saw the strong Retail Sales data as an opportunity to secure potential profits. The index failed to break above the resistance range of 5870–5880 and pulled back toward the 5850 level. If the S&P 500 drops below 5850, it may target the next support zone in the 5800–5810 range.
 

NASDAQ

The NASDAQ also pulled back from its session highs due to profit-taking, although demand for AI-related stocks remains strong. Micron, NVIDIA, and Arm Holdings were among the top performers in the NASDAQ index today.

If the NASDAQ falls below the 50-day moving average at 20,208, it may move toward the next support level in the 20,000–20,100 range.
 

Dow Jones

The Dow Jones hit new highs, driven by a strong rally in Travelers Companies stock, which surged 8.9% following a better-than-expected earnings report.

From a technical standpoint, the Dow Jones must break above the 43,100–43,200 resistance zone to gain further upward momentum in the near term. On the downside, a drop below the 43,000 level would likely push the index toward the next support area, located between 42,600 and 42,700.
 

Conclusion:

In summary, the major indices are navigating a mix of profit-taking and strong sector performance, particularly in AI-related stocks for the NASDAQ 100. While the S&P 500 and Dow Jones saw some retracement after testing key resistance levels, market fundamentals remain robust with better-than-expected earnings and economic data supporting the overall outlook. Moving forward, the NASDAQ 100 could face further downside if it breaks below its 50-day moving average, while the S&P 500 and Dow Jones will need to clear critical resistance zones to unlock additional gains. Traders should keep an eye on these support and resistance levels, as they will likely dictate the near-term momentum for each index.