Dow Jones, S&P 500, and Nasdaq are trading modestly lower at the start of a week

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 Apr 12, 2021
  • Wall Street's three main indexes are trading modestly lower at the start of a week
  • The U.S. policymakers continue to focus on ensuring that the labor market makes a full recovery
  • Dow Jones, the S&P 500, and Nasdaq remain in a bull market despite some uncertainties

Wall Street’s three main indexes are trading modestly lower at the start of a week after the S&P 500 and the Dow had their third straight weekly gain, while the Nasdaq has advanced for two weeks in a row. The Fed chief Jerome Powell said that even though the U.S. economy continues to recover from the pandemic, this shouldn’t lead anyone to believe that the central bank would dial-up interest rates in 2021.

“The economy “seems to be at an inflection point,” with strong growth coming “right now” and the weakness caused by the coronavirus pandemic in the rearview mirror. I think it’s unlikely that we would raise rates anything like this year,” Powell said during the “60 minutes” interview, which was taped at the Fed’s headquarters.

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The U.S. policymakers said they expect a rise in inflation, but despite this, they will have a focus on ensuring that the labor market makes a full recovery. Higher inflation expectations will maintain government debt yields up for the upcoming period; still, many analysts say that the Fed will remain “supportive” and even if bond yields rise.

Dow Jones, the S&P 500, and Nasdaq remain in a bull market despite uncertainties regarding inflation and the tax regime. “The investment community is too upbeat in our opinion, not showing any concern for plausible tax increases being proposed by the Biden administration. Indeed, all developments are perceived as positive news,” said an analyst from Citigroup.

S&P 500 continues to trade above 4,000 points

Data source: tradingview.com

S&P 500 continues to trade above 4,000 points, but if the price falls below 3,800 points, it would be a strong “sell” signal, and we have the open way to 3,600 points.

DJIA remains in a bull market

The Dow Jones Industrial Average (DJIA) slipped 103 points at the beginning of the week to trade near 33,692, representing a decline of 0.31%.

Data source: tradingview.com

The Dow Jones Industrial Average continues to trade in a buy zone, but if the price falls below 33,000 points, the next target could be around 32,500 points.

Nasdaq Composite has found support above 13,500 points

The Nasdaq Composite (COMP) weakened 46 points at the beginning of Monday to trade near 13,856, representing a decline of 0.31%.

Data source: tradingview.com

If the price jumps above 13,900 points, it would be a “buy “signal for Nasdaq Composite, but if the price falls below the 13,500 support level, it would be a strong “sell” signal, and we have the open way to 13,000 points.

Summary

Wall Street’s three main indexes are trading modestly lower at the start of a week after the S&P 500 and the Dow had their third straight weekly gain, while the Nasdaq has advanced for two weeks in a row. Dow Jones, the S&P 500, and Nasdaq remain in a bull market despite uncertainties regarding inflation and the tax regime.

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