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

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The Dow Jones, the S&P 500, and the Nasdaq advanced on a weekly basis following a strong U.S. jobs report and positive data for Pfizer’s experimental pill against COVID-19. The U.S. released the Nonfarm Payrolls report on Friday, which showed that the country added 531K jobs in October.

The job report beat economists’ estimate of 450K, and the positive news is that the unemployment rate fell to 4.6% from 4.8% in September. Stifel Chief Economist Lindsey Piegza said in a statement Friday:

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From a policy perspective, while a series of strong job reports over the next few months could prompt the Federal Reserve to accelerate its newly announced tapering plans, a series of weaker-than-expected employment numbers could equally result in the Committee reducing the pace of the taper.

Last week, the U.S. Federal Reserve announced the tapering of its $120 billion in monthly bond purchases by $15 billion per month. The announcement did not surprise investors, but investors will continue to pay attention to the Federal Reserve commentaries looking for any clues.

A hawkish turn should positively influence the U.S. dollar, but besides this, some investors view the Fed’s stance as a vote of confidence for the U.S. economy. Strong corporate earnings also boosted optimism around investors, and results from many big companies provided a strong start to the last quarter of 2021 year.

On the other side, the rising inflation, together with the world’s supply chains crisis, became a concern for investors. The annual inflation rate in the U.S. hit a 13-year high of 5.4% in September, which is well above the U.S. Federal Reserve target.

Fed Chair Jerome Powell said that high inflation would probably be transitory, but supply chain issues would likely extend well into next year. The upcoming week will be busy; the U.S. will publish the final estimates of October inflation figures and a preliminary estimate of the November Michigan Consumer Sentiment Index.

S&P 500 up 2% on a weekly basis

For the week, S&P 500 (SPX) booked a 2% increase and closed at 4,697 points.

Data source: tradingview.com

S&P 500 continues to trade in a bull market; still, if the price falls below 4,500 points, it would be a “sell” signal, and we have the open way to 4,300 points.

DJIA up  1.4% on a weekly basis

The Dow Jones Industrial Average (DJIA) advanced 1.4% for the week and closed at 36,327 points.

Data source: tradingview.com

The strong resistance level stands at 37,000 points, and if the price jumps above this level, we have the open way to 37,200 points. On the other side, if the price falls below 35,000 points, it would be a firm “sell” signal, and the next target could be around 34,500 points.

Nasdaq Composite up 3.05% on a weekly basis

For the week, the Nasdaq Composite (COMP) booked a 3.05% increase and closed at 15,971 points.

Data source: tradingview.com

If the price jumps above 16,100 points, it would be a bullish confirmation for this index. The current support level stands at 15,500 points, and if the price falls below this level, the next target could be 15,000 points.

Summary

Wall Street’s three main indexes advanced on a weekly basis following a strong U.S. jobs report and positive data for Pfizer’s experimental pill against COVID-19. The U.S. added 531K jobs in October while the unemployment rate fell to 4.6% from 4.8% in September.

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