Dow Jones Futures Drop, However, Techs Rise
Dow Jones futures fell slightly early Thursday.
The stock market rally retreated for a second straight session, amid ongoing debt-ceiling talks. The Nasdaq is still above key levels, and The Dow Jones tested its 200-day line and is now down for the year.
On Wednesday, negotiators for the White House and House Republicans continued debt-ceiling talks. A default looms in early June without a deal to raise the debt limit.
House Speaker Kevin McCarthy said there is still “time” for a debt-ceiling deal. But House lawmakers will leave town for the Memorial Day weekend.
Shares of Nvidia rose 27% in premarket trading after the beneficiary of artificial intelligence provided stronger-than-anticipated sales guidance for its fiscal second quarter and reported top- and bottom-line gains in the prior quarter. Following the results, a few analysts who monitor the stock increased their price estimates for the stock.
The major averages continued to be affected by the debt ceiling talks. Early on Wednesday, the negotiations ran into trouble. House Speaker Kevin McCarthy later said the talks were moving forward.
A correction released by the Commerce Department on Thursday indicates that the U.S. economy expanded more than previously estimated in the first quarter.
The annualized growth rate of the gross domestic product from January through March was 1.3%, which was 0.2% higher than the initial forecast. A 1.1% reading was what economists polled by Dow Jones had anticipated.
Around 6:40 p.m. ET, the Dow futures had a small decline of about 100 points or 0.3%.
DOW JONES TECHNICAL ANALYSIS DAILY CHART:
Dow Jones is currently trading in the down channel.
Dow Jones is currently trading below all SMA.
RSI is in the selling zone which suggests bearishness and Stochastic is suggesting a downtrend.
Immediate resistance is at 32992.82 & its immediate support level is 32814.37
HOW TO TRADE DOW JONES IN THIS WEEK
Dow Jones reversed to the downside after making a nice move to the upside, building a lower-low structure while doing so. Currently, it is trading at its second major support, and if it breaks, we can expect further decline.