Nasdaq, Dow and S&P 500 Forecast: Bulls Return as Yields Fall

• The 10-year Treasury yield declined significantly during early trading, reducing pressure on equity valuations and supporting the market rally
• Technical analysis shows all three indices back above key support levels, with the S&P 500 reclaiming its 50-day EMA and targeting 7,800
• Positive geopolitical headlines, including potential diplomatic talks, helped ease recent market fears and contributed to the risk-on sentiment

Market Summary

Key Market Movements

U.S. equity markets staged a strong rally on Monday, September 21, 2026, driven by falling Treasury yields and easing geopolitical tensions. The Nasdaq 100 tested the critical 30,000 resistance level, while the S&P 500 broke above 7,700 and the Dow Jones 30 recovered to 52,121.

Main Drivers

The rally was catalyzed by a significant rollback in the 10-year Treasury yield, which supported risk appetite across all major indices. Positive sentiment emerged from potential diplomatic progress, with reports that Trump expressed openness to talks with Iran, raising hopes for a peaceful resolution.

Technical Analysis

• Nasdaq 100: Bulls returned aggressively, threatening the psychologically important 30,000 level in early trading
• S&P 500: Successfully reclaimed 7,709.50 after bouncing from support near 7,520, with analysts targeting 7,800. The index moved back above its 50-day exponential moving average (EMA)
• Dow Jones 30: Showed strong recovery momentum, though the 50-day EMA presents potential near-term resistance

Market Implications

All three indices remain in longer-term uptrends despite recent pullbacks. The combination of declining interest rates and reduced geopolitical risk has created favorable conditions for continued equity market strength. Analysts note the recent correction to 7,600 (S&P 500) appears to have provided a healthy consolidation before the next potential leg higher.

The coordinated rally across major indices suggests broad-based investor confidence returning to markets.