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Dow Jones Trades Wobbly as Investors Await Fed’s Midweek Appearance

  • The Dow Jones remains near Monday’s opening bids in reduced action.
  • Markets are eyeing a recovery after Friday’s NFP hangover.
  • Wednesday brings the US CPI update, the Fed rate decision and interest rate expectations.

The Dow Jones Industrial Average (DJIA) is moving on the chart on Monday, hovering around 38,750.00 as investors look for a reason to regain their footing after last Friday’s Non-Farm Payrolls (NFP) decline saw rate cut hopes in the general market.

Investors will prepare to wait until the latest presentation from the Federal Reserve (Fed) on Wednesday. The Fed is widely expected to keep interest rates unchanged this week, but markets will be eager to see updates to the Fed’s “dot plot,” or summary of interest rate projections.

US Consumer Price Index (CPI) inflation figures will also be released on Wednesday. Investors expect headline MoM CPI inflation to ease to 0.1% from 0.3%, but core CPI is expected to remain stable at 0.3% MoM.

Dow Jones News

The DJIA is mixed on Monday, with about half of its values ​​in the green and the other half falling slightly. Walmart Inc. (WMT) is rising to the top, rising 1.37% on Monday to $66.78 per share, as investors are confident that Walmart’s pivot to online retail and focus on higher-income individuals will increase. its market share.

On the downside, Visa Inc. (V) fell -1.53% on Monday, falling to $274.39 per share on the day. Visa faces downward pressure after investors noted that insiders have been selling Visa shares for the past year, with very little buying activity. Visa insiders currently own about 0.05% of the entire company, which is an incredibly low ratio for people operating at a management level.

Dow Jones Technical Outlook

The Dow Jones looks for a foothold on Monday, holding above 38,700.00 despite a lack of bullish momentum. The main index continues to decline from Friday’s peaks near 39,100.00, and the short-term bullish rebound from June could be under threat.

The Dow Jones remains far from all-time highs above 40,000.00, but a demand zone below 38,000.00 is providing firm long-term bullish pressure, keeping the index well above the Exponential Moving Average (EMA). ) 200 days at 37,318.74.

Dow Jones Five Minute Chart

Dow Jones Daily Chart

economic indicator

Fed interest rate decision

He committee of governors of the federal reserve announces the interbank interest rate. This rate affects a range of interest rates set by commercial banks, building societies and other institutions for their own borrowers and depositors. Any change in the trend observed in the statement accompanying the interest rate decision will affect the volatility of the dollar. If the Fed is firm on the economy’s inflationary outlook and raises rates, this is bullish for the dollar, while an outlook for reduced inflationary pressures will be bearish for the dollar.

Source: Fx Street

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