DOW JONES is trading down 1.05% at 32899.71
U.S. stocks are seen opening higher Monday, on growing confidence that the Federal Reserve can tighten monetary policy sufficiently to deal with soaring inflation without tipping the economy into recession.
At 7 AM ET (1100 GMT), the Dow Futures contract was up 265 points, or 0.8%, S&P 500 Futures traded 45 points, or 1.1%, higher and Nasdaq 100 Futures climbed 185 points, or 1.5%.
The main indices on Wall Street closed lower Friday, with the blue-chip Dow Jones Industrial Average ending down almost 350 points, or just over 1%, the broad-based S&P 500 1.6% lower and the tech-heavy Nasdaq Composite down 2.5%.
This followed a strong U.S. jobs report which pointed to the U.S. central bank continuing its monetary tightening policy when it meets next week.
Friday’s U.S. CPI report for May is expected to come in at a still-elevated 8.3% year over year, but the widely-watched core figure, which excludes the volatile energy and fuel prices, is seen at 5.9% year over year, down from 6.2% in April. This would be a third month of consecutive declines, suggesting inflation may have peaked.
The U.S. economy is still on a narrow path to a soft landing, according to economists at Goldman Sachs, as improving inflation figures and other factors suggest the Federal Reserve may be able to pull off its aggressive interest rate hike plan without causing the country’s economy to slump.
On technical fronts DOW JONES RSI stood at 73.89 and currently it is trading above all MA. So, BUY position can be taken with following target and stoploss:
TRADE SIGNAL – : DOW JONES – BUY: 33139.00, TARGET: 34012.00, STOP LOSS: 31984.00