- The Dow Jones Industrial Average rose slightly during its recent trading on intraday levels, to achieve slight gains in its last sessions by 0.10%.
- It gained about 34.87 points, and to settle at the end of trading at the level of 34,429.89, after its decline during Thursday's trading by -0.56%.
- During the past week, the index was able to achieve gains for the second week in a row, by 0.24%.
Investors have been looking for signs of weakness in the labor market. Especially wages as a precursor to a faster rein in inflation, which would enable the Federal Reserve to slow and eventually halt the current cycle of rate hikes.
The Bureau of Labor Statistics said on Friday that nonfarm employment increased by 263,000 jobs last month after a revised increase in October of about 284,000 jobs. The consensus on Wall Street was an estimated increase of about 200,000 jobs, with growth estimates ranging from from 150K to 275K, while the unemployment rate remained unchanged at 3.7%, matching Wall Street expectations.
The stronger-than-expected jobs report on Friday gives the Federal Reserve more reason to keep raising interest rates and maintaining tighter monetary policy for a while longer. At least until the labor market starts to weaken, signal markets don't want to hear right now.
Now, after that data, there is a 77% chance that the central bank will announce a 50 basis point rate hike on December 14, up from 52% last month. However, it was down from 78% on Thursday, and the markets have a 23% chance of another 75 pips raise.
As a reminder, St. Louis Federal Reserve Chairman Jim Bullard noted in a chart last month that the federal funds rate, the central bank's benchmark policy rate, may need to rise to 7%.
Dow Jones Technical Analysis
Technically, by closing the last indicator, it confirms the breach of the current 34,281.36 resistance level, amid its influence by its earlier breach of a bearish corrective slope line in the short term. This is shown in the attached chart for a (daily) period, considering the continued positive support for its trading above its 50-period simple moving average. previous days.
In addition to the above, we notice a new positive sign that has appeared, which is the positive intersection of the relative strength indicators. It happened after it reached exaggerated oversold areas compared to the indicator's movement, which suggests the start of a positive divergence in it.
Therefore, our expectations indicate more rise for the index during its upcoming trading, especially as long as it stabilizes above the level of 34,281.36, to target the resistance level of 35,372.26.
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