Dow Jones, the S&P 500, and Nasdaq price forecast after positive U.S. job report

Wall Street's three main indexes advanced last week even though the Fed left the door open to another 75 bps hike, but investors welcomed the fact that it refrained from hinting at a 100 bps rate hike or any other more aggressive measure.

Federal Reserve officials agreed that very high inflation warranted restrictive interest rates, and they confirmed that they would be open to being even more restrictive if inflation persists.

On the other side, the U.S. job market confirmed that the economy is on solid footing as the country reported that nonfarm payrolls rose more than expected in June. The U.S. released the Nonfarm Payrolls report on Friday, which showed that the country added 372,000 jobs in June.

The job report surpassed economists' estimate of  268,000 for June, and Federal Reserve Bank of St. Louis President James Bullard said that the labor market remains robust and is expected to continue to expand through 2022. Federal Reserve Bank of St. Louis President James Bullard added:

The unemployment rate remained unchanged at 3.6%, while the labor force participation rate ticked lower to 62.2%.

Despite this, several financial institutes have downwardly revised the U.S. growth, and according to JP Morgan and Wells Fargo, the economy should grow at a slower pace than previously estimated. Federal Reserve officials also see downside risk to growth, but they decreased the possibility of a recession.

Next trading week will be busy; the U.S. will publish inflation figures and retail sales figures for June. The Consumer Price Index is expected to have risen to 8.7% YoY, from 8.6% in May, while the retail sales are expected to have recovered after dipping in the previous month.

S&P 500 up 1.9% on a weekly basis

For the week, S&P 500 (SPX) booked a 1.9% increase and closed at 3,899 points.

The current support stands at 3,800 points, and if the price falls below this level, it would be a "sell" signal, and we have the open way to 3,700 points. The upside potential still remains limited, but if the price jumps above 4,000 points, the next target could be 4,200 points.

DJIA up  0.8% on a weekly basis

The Dow Jones Industrial Average (DJIA) advanced 0.8% for the week and closed at 31,338 points.

The first resistance level stands at 32,000 points, and if the price jumps above this level, we have the open way to 32,300 points. On the other side, if the price falls below 31,000 points, it would be a firm "sell" signal, and the next target could be around 30,500 points.

Nasdaq Composite up 4.6% on a weekly basis

For the week, the Nasdaq Composite (COMP) booked a 4.6% increase and closed at 11,635 points.

The important resistance level stands at 12,000 points, and if the price jumps above this level, we have the open way to 12,500 points. The strong support level stands at 11,000 points, and if the price falls below this level, the next target could be 10,500 points.

Summary

The Dow Jones, the S&P 500, and the Nasdaq advanced last week, and the U.S. reported a better than expected job report for June. Next trading week will be busy; the U.S. will publish inflation figures and retail sales figures for June.