DOW JONES FALLS AS INVESTORS AWAIT INFLATION DATA – 12 MAY 2023
12 May 2023
The Dow futures gain 145 points, whereas the Michigan sentiment data
U.S. equities are expected to begin higher on Friday as investors become more hopeful that the Federal Reserve would pause its programme of monetary tightening. However, anxieties about a potential recession, the debt ceiling, and the banking industry continue to be present.
The Dow Futures contract was up 145 points at 7:00 ET (11:00 GMT).
Following PacWest Bancorp’s announcement that its deposits had decreased by about 10% in the first week of May, renewed worries about deposit outflows in the regional banking sector caused the blue-chip Dow Jones Industrial Average to close over 200 points, or 0.7%, lower on Thursday, marking its fourth straight losing session.
Data released on Thursday revealed that while unemployment claims increased to their highest level since October 2021, producer price growth in the United States slowed to its lowest point in more than two years.
Growing anticipation that the Fed’s members would cease the period of aggressive interest rate hikes at its next policy meeting in June are a result of these indicators of a slowing economy.
DOW JONES TECHNICAL ANALYSIS DAILY CHART:
Dow Jones is currently trading in down channel.
Dow Jones is currently trading below 5&20 SMA.
RSI is in buying zone which suggests bullishness and Stochastic is suggesting down trend.
Immediate resistance is at 33393.85 & its immediate support level is 33243.85
HOW TO TRADE DOW JONES IN THIS WEEK
Dow Jones is currently trading in a downward channel, and if it breaks that channel, the price would likely fall much further.