Dow Jones, the S&P 500, and Nasdaq price forecast after last week’s gain

Wall Street’s three main indexes advanced for a fourth straight session on Friday and logged their biggest weekly gain in about sixteen months.

For the week, the S&P 500 rose 6.2%, the Dow added 5.5%, and the Nasdaq gained 8.2% even though the U.S. central bank surprised market participants with hawkish announcements for the upcoming meetings.

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As widely expected, the U.S. Federal Reserve hiked the main rate by 25 bps this week, but FED members believe that inflation is likely to continue higher-than-predicted for longer.

The dot plot included six more rate hikes for this year, and Federal Reserve Chair Jerome Powell said that the Russia-Ukraine conflict poses a risk to economic growth and inflation. Richmond Federal Reserve President Thomas Barkin said:

We have moved at a 50-basis point clip in the past, and we certainly could do so again if we start to believe that it is necessary to prevent inflation expectations from unanchoring.

Many countries are considering further toughening their sanctions to Russia, and this situation continues to cause supply chain issues to many companies that look to find other sources for their parts.

U.S. President Joe Biden said to Chinese President Xi Jinping that there would be “consequences” if China offered material support to Russia’s invasion of Ukraine.

NATO Secretary-General Jens Stoltenberg said that the alliance would continue to send weapons to Ukraine, and the volatility of stock markets should remain high in the coming days as events in Ukraine dictate market moves.

Next week, the U.S. will publish preliminary estimates of the Markit March Manufacturing PMIs  and February Durable Goods Orders.

S&P 500 up 6.2% on a weekly basis

For the week, S&P 500 (SPX) booked a 6.2% increase which marked the S&P 500’s biggest weekly gain in about sixteen months.

Despite this, S&P 500 is still in the red for 2022, and the further turmoils should not be discounted. 4,200 points represent the strong support level, and if the price falls below it, it would be a “sell” signal, and we have the open way to 4,000 points.

DJIA up  5.5% on a weekly basis

The Dow Jones Industrial Average (DJIA) advanced 5.5% for the week and closed at 34,754 points.

The Dow Jones Industrial Average is still trading below its highs registered last month, and the current resistance level stands at 35,000 points.

The current support level stands at 34,000 points, and if the price falls below this level, it would be a “sell” signal.

Nasdaq Composite up 8.2% on a weekly basis

For the week, the Nasdaq Composite (COMP) booked an 8.2% increase and closed at 13,893 points.

Even with last week’s gains, Nasdaq has plunged by more than 10% so far this year, and if the price falls again below 13,500 points, it would be a strong “sell” signal.

Summary

Wall Street’s three main indexes advanced for a fourth straight session on Friday and logged their biggest weekly gain in about sixteen months. The U.S. central bank hiked the main rate by 25 bps this week while Federal Reserve Chair Jerome Powell said that the Russia-Ukraine conflict poses a risk to economic growth and inflation.

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