Nasdaq 100, Dow Jones 30 and S&P 500 Forecasts – US Indices Continue to Rise on Friday

• Nasdaq 100 broke out to fresh all-time highs with 28,000 identified as significant support, though analysts acknowledge the market is overstretched
• Dow Jones 30 approaches the psychologically significant 50,000 level with 50-day moving average providing support as traders show little concern about rate policy
• S&P 500 threatens the 7,400 level after gapping lower then recovering, with 7,300 providing short-term support despite being overbought for three consecutive weeks

Market Summary: U.S. Indices Extend Rally to Record Highs

Date: May 8, 2026

Key Market Performance

U.S. equity indices continued their strong upward momentum on Friday despite a hotter-than-expected jobs report:

• Nasdaq 100: +1.60%, breaking to fresh all-time highs
• S&P 500: +0.75%, threatening the 7,400 level
• Dow Jones 30: +0.15%, approaching the psychologically significant 50,000 level

Market Dynamics

All three indices are trading at or near record highs, supported by declining interest rates. The strong jobs data did not derail market enthusiasm, as traders appear unconcerned about the current interest rate environment. Analysts note the Federal Reserve was unlikely to cut rates regardless, given the ongoing energy shock situation.

Technical Outlook

Nasdaq 100: The index is described as "overstretched" but showing no signs of reversal. Support identified at 28,000, though a test of this level appears unlikely in the near term.

Dow Jones 30: The 50,000 level remains a critical psychological barrier. The index may consolidate before breaking through as rates continue declining.

S&P 500: After gapping lower, the index recovered to challenge 7,400. Short-term support is established at 7,300.

Analyst Perspective

Senior analyst Chris Lewis acknowledges markets are overbought—a condition that has persisted for three weeks—but recommends buying dips given the sustained momentum. The strategy emphasizes patience and focusing on daily timeframe opportunities, though he cautions that "gravity has to be acknowledged" eventually.