Dow Jones, S&P 500, and Nasdaq advanced on a weekly basis. Here are the next targets

By: Stanko Iliev
Stanko Iliev
Stanko dedicates himself to providing investors with relevant information they can use to make investment decisions. He loves the… read more.
on Mar 14, 2021
  • For the week, the Dow Jones advanced 4.1%, the S&P 500 2.6%, and the Nasdaq 3.1%
  • U.S. President Joe Biden signed a $1.9 trillion COVID-19 relief package on Thursday
  • U.S. Treasury yields rose to fresh one-year highs on Friday

The U.S. stock market advanced last week as investors remain optimistic about the large U.S. stimulus package. The S&P 500 and Nasdaq posted their biggest weekly percentage gains since early February, while the Dow Jones Industrial Average had its biggest weekly gain since November.

U.S. President Joe Biden signed a $1.9 trillion COVID-19 relief package on Thursday, and the prospect of more government spending keeps the market in a positive mood. The pandemic is still the main drag for an economic comeback, but U.S. President Joe Biden called on all states to make all adult Americans eligible for COVID-19 vaccines by May 1.

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U.S. Treasury yields rose to fresh one-year highs on Friday, which raised some worries that the upside potential for Wall Street’s three main indexes remains limited for now. Higher yields pose a risk to the economic recovery amid rising borrowing costs, but the U.S. central bank is widely anticipated to maintain rates and stimulus programs unchanged.

“We are back to the idea that more growth is more inflation, and investors are a little nervous about current yield levels, which is affecting tech stocks. It’s all about the pace in which yields grow, and the market seems to be comfortable with another 10-20 basis points jump in the benchmark yield if backed up by strong data that shows the economic recovery,” said Victoria Fernandez, chief market strategist at Crossmark Global Investments in Houston.

The positive news is that initial jobless claims for the week ended March 5 improved to 712K; still, the labor market is far from full employment.

S&P 500 up 2.6% on a weekly basis

For the week, S&P 500 (SPX) booked a 2.6% increase and closed at 3,943 points.

Data source: tradingview.com

As long the price is above this trend line, the S&P 500 index remains in a bull market, and there is no indication of the trend reversal. If the price jumps above 4,000 points, it would be a “buy “signal for the S&P 500, and the next target could be around 4,100 points.

DJIA up  4.1% on a weekly basis

The Dow Jones Industrial Average (DJIA) advanced 4.1% for the week and closed at 32,778 points.

Data source: tradingview.com

The Dow Jones Industrial Average had its biggest weekly gain since November, and if the price jumps above 33,000 points, the next target could be around 33,200 points. On the other side, if the price falls below 32,000 points, it would be a firm “sell” signal, and the next target could be around 31,500 points.

Nasdaq Composite up 3.1% on a weekly basis

 The Nasdaq Composite (COMP) gained 3.1% on a weekly basis and closed at 13,319 points.

Data source: tradingview.com

If the price jumps above 13,500 resistance, it would be a “buy “signal for Nasdaq Composite, but if the price falls below 13,000 points, it would be a strong “sell” signal, and we have the open way to 12,500 points.

Summary

The U.S. stock market advanced last week as investors remain optimistic about the large U.S. stimulus package. The S&P 500 and Nasdaq posted their biggest weekly percentage gains since early February, while the Dow Jones Industrial Average had its biggest weekly gain since November.

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