- The Dow Jones Industrial Average rose slightly during its recent trading at the intraday levels, to achieve slight gains in its last sessions, by 0.10%.
- It went by about 32.49 points, settling at the end of trading, away from the lowest levels of the session at 33,747.87.
- This happened after rising by 3.70%during Thursday’s trading. Over the past week, the index recorded an increase of 4.15%, or the equivalent of 1,344.64.
Thursday's events continued to weigh on the market after data showed annual consumer price growth fell more than expected in October as core inflation slowed. This raised expectations and hopes that the Federal Reserve will slow the pace of rate hikes when the Policy Committee meets again in mid-December, boosting stock and commodity markets.
Investors now see an 81% chance of a 50 basis point rate hike in December and a 19% chance of a 75 basis point increase.
But the decline in healthcare stocks limited the gains of the Dow Jones Industrial Average. Comments from Federal Reserve official Christopher Waller came somewhat negative on the stock market, as Waller said that it will take a series of soft reports for the bank to undo the brakes in raising prices. Interest led to a rise in the dollar and a decline in the prices of goods priced in dollars.
Meanwhile, the Current Economic Conditions Index fell 12% to 57.8, while expectations fell to 52.7 from 56.2.
Inflation expectations for next year rose to 5.1% from 5% in October. The five-year rate moved to 3% from 2.9%, and stayed within the narrow range of 2.9% to 3.1% for 15 of the last 16 months.
While US consumer sentiment soured this month amid rising inflation, according to the University of Michigan gauge. The school's index of consumer confidence fell to 54.7 from 59.9 in October. The November reading was below expectations of 59.5 from economists polled by the Wall Street Journal.
Dow Jones Technical Analysis
Technically, the index is benefiting from the continuous positive support of its trades above its simple moving average for the previous 50 days. It was also affected by its breach of a bearish corrective slope in the weekend’s trading, to give a great opportunity to end this bearish corrective wave in the short term, but in front of that, we notice the influx of negative signals on the relative strength indicators. This is what has curbed the index's recent gains.
Therefore, our expectations indicate more ascent for the index during its upcoming trading, as long as support remains at 32,504.00, to target the first resistance levels at 34,281.30.
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