S&P 500, Nasdaq, Dow Jones Price Prediction Following Last Week’s Surges

  • The week has Dow Jones adding 2.92%, Nasdaq +3.8, and S&P 500 +3/25%.
  • Data showed the US CPI was less than expected in July.
  • Market players anticipate less hawkishness from Fed.

Wall Street’s three primary indexes surged over the past week as signals that inflation could have peaked last month amplified investor confidence about an underway bull market.

The United States announced that the CPI (Consumer Price Index) was less than expected in July, 8.5% up year-over-year, whereas the PPI (producer price index) revealed similar outcomes, surging 9.8% Y/Y in that month.

Such developments had investors projecting less hawkishness by the Fed. That means increased chances of the Federal executing a 50 basis point hike during the September meeting, alleviating the potential 75bp.

Inverness Counsel’s chief investment strategist stated that he would not announce victory over the bear market yet, citing possible pessimistic updates within the marketplace. He also trusts that the market could have bottomed.

The United States stocks market registered the highest weekly inflows since December 2021, and Bank of America revealed that investors purchased equities worth $7.1 billion during the week until Wednesday.

Moreover, steady corporate earnings ensured a positive influence on the market, and outcomes from most leading companies formed a massive start to the 2022 Q3. S&P 500 firms announced a 9.7% Y/Y earnings growth in April-June, outshining the predicted 5.6% for the quarter.

The coming week remains busy, with companies such as Deer & Co, Applied Materials, The Estee Launder firms, Cisco Systems, Walmart, and the Home Depot expected to announce their quarterly earnings. Also, the US will announce July’s Retail Sales numbers, and the Fed will publish the latest financial policy meeting’s minutes.

S&P 500 3.25% Up

The week has S&P 500 gaining 3.25% to close at 4,280 pts. The index surged around 17.7% from the lows recorded in June, and a jump beyond the immediate 4,400 pts resistance will clear the past to $4,500 pts. However, a dip beneath 4,100 pts would signal a ‘sell,’ opening the gated to 4,000 pts.

DJIA 2.92% Up

Dow Jones gained 2.92% to close the previous week at 33,761 pts. The present resistance hovers at 34,000 pts, and a move beyond it would reveal 34,500 as the next target. The crucial support wavers at 32,000 pts. Losing the barrier would see the index hitting 31,000 pts.

Nasdaq Composite 3.8% Up

The Nasdaq Composite gained 3.8% over the week to close at 13,047 pts. It has a massive resistance at 13,500 pts, beyond which the index will climb toward 14,000 pts.

Leave a comment