Dow Jones, S&P 500, and Nasdaq 100 Weekly Outlook. Given the remarkable gain this week, US indexes ended with a bit of a sigh on Friday.

Dow Jones and US Indices ended the week in uncertainty

AN OVERVIEW OF THE US INDICES WEEK

Given the remarkable gain this week, US indexes ended with a bit of a squeak on Friday. The US debt ceiling uncertainty caused markets to enter the week with a little bit of anxiety.

However, when good news about the debt ceiling and a potential deal started to spread. The S&P 500, Nasdaq 100, and Dow Jones all benefited. Broad confidence and risk assets gained as a result, as Republican House Representative Kevin McCarthy said on Sunday evening.

Nevertheless, as Friday’s US session got underway, we learned from GOP debt ceiling negotiator Graves – Whom indicated that the “White House was being difficult” and that discussions had ceased. These comments may be the cause of the week’s dismal conclusion. In which all three US indices finished in the red for the day, creating some doubt for the coming week.

Regarding the most recent changes in US indexes, many experts have been wary. This is mostly due to the unequal gains witnessed with the large size tech stocks that are driving the boom. Having a short look at Meta and Nvidia, which are amongst the top 8 biggest companies in the SP500. Have increased by more than 100% this year.

Another indication that megacap technology served as the rally’s basic driver of vigor. These firms, along with others that supply hardware as well as software to the developing artificial intelligence industry. Have seen the greatest gains to date, which is the cause for a careful view.

FORECASTS OF THE S&P 500, NASDAQ 100, AND DOW JONES FOR THE NEXT WEEK

The US debt ceiling discussions are expected to be at a boiling point. And there are several noteworthy risk events that might potentially come into effect. This makes for an exciting week for stock indexes.

End-of-week inconsistent message presents a danger to overflow, and US Indices are sure to feel the burden. The Treasury Secretary Janet Yellen gave a signal that the instability in the financial industry might not be finished.

These remarks coincided with those made on Friday by Fed Chair Jerome Powell, who adopted a somewhat dovish note. As a result, prospects for a rate rise in June dropped from around 40% to 22%. Which is good news for the stock market. In the next week, we do get the FOMC minutes, which might offer us some insight into the Federal Reserve’s justifications going ahead.

Still, the debt ceiling standoff appears to be the market’s primary motivator right now. The US currency, bond rates, and commodities are all under pressure in one way or another. Considering that the GOP mediator quit on Friday, markets are bound to begin next week on a cautionary tone. As they watch if negotiations and talks develop and how they affect the mood of the market as a whole. We still believe that, as in the past, a compromise on raising the US debt ceiling will be struck within the due date.

Economic Activity for the upcoming week

From a US standpoint, the upcoming week’s schedule is fruitful, with four “high as well as medium ranked data events” and (such as a number of Fed Speeches).

The following four economic calendar occasions are high-rated risk catalysts for the next week:

The FOMC Minutes Release is scheduled for Tuesday, May 24, at 18:00 GMT.

GDP Growth Rate QoQ (2nd Estimate) figures are scheduled at 12:30 GMT on Thursday, May 25.

Additionally, the Core PCE Price Index data, the Fed’s favored measure of inflation, come due at 12:30 GMT next Friday, May 26.

The Michigan Consumer Sentiment (final) data will conclude the week on Friday, March 31 at 14:00 GMT.

From a US viewpoint, this week’s economic schedule is rather full, with the largest event expected to occur. Being inflation figures in the form of the PCE price index. We don’t expect any significant surprises from the FOMC minutes considering how much the Fed has spoken over the previous week and the next week. Several of US corporations are going to release earnings the next week as the earnings season resumes on Monday. The biggest names to watch will be Zoom Video on Monday and Nvidia on Wednesday. Both of whose earnings reports are anticipated to be released after the close of trading.

Technical Perspective and Analysis

Technically speaking, the S&P has finally topped the region between 3800 and 4200 before modestly declining in advance of the weekend. Over the past 18 months, it has been extremely difficult to shatter the 4200 key. If the US debt ceiling is raised, a sustained break upward may be attainable, with initial resistance likely to be found at the 4250 and 4320 levels. Considering the lack of clarity entering the new week, there is a chance that a decline might occur prior to the bull’s comeback. Which might put attention on right away at 4135. Any further decline and the 100-day MA at 4043, 4100, and becomes regions of emphasis.

As was already indicated, the Nasdaq 100 has been an outstanding performer recently. Ever since it recorded its low on March 13 near the 11686 mark (which in turn coincided with the swing top on Jan 18). When the 50-day moving average crossed above the 200-day MA, and the daily candle bounced off the 100-day moving average. We got a golden cross this, from a technical standpoint, hinted at the current upward rise.

Major Technical Levels to Monitor

Key Support Levels:

• 13700
• 13450
• 13021 (50-day MA)

Key Resistance Levels:

• 14000
• 14270
• 14500

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