- The Dow Jones Industrial Average jumped up in its recent trading on intraday levels, to achieve strong gains in its last sessions by 2.13%.
- It gained about 700.53 points, settling at the end of trading at the level of 33,630.62, after its decline during Thursday's trading by -1.02%.
- During the past week, the index rose by 1.5% in short trading due to Monday's holiday.
US wage growth slowed unexpectedly in December and values from previous months were revised sharply lower. However, the jobs report showed that the US economy added more jobs than expected for the ninth consecutive month, overheating the US labor market.
On Friday morning, the US Labor Department revealed that the economy added 223,000 jobs in December, beating expectations for a reading of around 200,000, while the unemployment rate unexpectedly fell to 3.5%.
However, job gains for the previous months were revised downward, and average hourly earnings rose while still rising 0.3%, less than expected in December.
ISM data also showed that non-manufacturing business activity declined, while factory orders contracted much more than expected.
The data eased concerns about the Fed's rate hike path, which caused stocks to rebound.
Meanwhile, Atlanta Federal Reserve Chairman Rafael Bostick said Friday during a speech to a panel sponsored by the National Association for Business Economics in New Orleans that the Fed has "more work to do." Bostick added that he would like to see the Fed The Fed raises the benchmark interest rate above 5%, but "not much above 5%".
As Fed Governor Lisa Cook said in a speech at the American Economic Association meeting in New Orleans that "inflation remains very high, despite some encouraging signs recently, and therefore is a major concern."
Dow Jones Technical Analysis
Technically, as we expected in our previous reports, the index received a positive boost from its reliance on the support of its simple moving average for the previous 50-day period. It was supported by positive signals from the relative strength indicators and considering its impact on the breach of a bearish corrective slope line earlier in the short term, as shown in the graph.
Therefore, our expectations indicate more rise for the index during its upcoming trading, provided that the support level at 32,582.00 remains intact, to target the first resistance level at 34,281.36, in preparation to attack it.
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