Dow Jones Futures Rise Ahead of Fed Meeting
12 Jun 2023
Ahead of the Fed meeting and inflation data, Dow Jones futures are up.
As traders hoped the Federal Reserve would refrain from raising rates when it made its policy announcement on Wednesday, stock futures increased on Monday.
Markets have come to expect that the Fed will skip another rate increase at this week’s meeting, with traders Monday morning pricing in a 76% chance that there will be no hike.
In expectation of a significant week for the stock market, which will include important inflation data and the Federal Reserve’s two-day meeting, Dow Jones futures remained steady while tech futures rose early on Monday. Amazon (AMZN) and Advanced Micro Devices (AMD) both increased on higher analyst price targets.
Dow Jones futures increased by 0.15%.
The Federal Reserve’s two-day policy meeting, which concludes on Wednesday at 2 p.m. ET, is largely anticipated to end without raising interest rates. The action would halt the 10 straight rate increases that had started in March of last year.
The consumer price index, an inflation measure that is scheduled to be released Tuesday morning before of that important decision, may have an impact on the Fed’s decision on Wednesday. The May CPI is predicted to increase by 0.3% month over month, with an annual inflation rate that drops from 4.9% to 4.1%. It is anticipated that the core CPI, which excludes food and energy, will increase by 0.4%, bringing the core inflation rate down from 5.5% to 5.3%.
DOW JONES TECHNICAL ANALYSIS DAILY CHART:
- Dow Jones is currently trading in the up channel.
- Dow Jones is currently trading above all SMA.
- RSI is in buying zone which suggests bullishness and Stochastic is suggesting up trend.
- Immediate resistance is at 33946.63 & its immediate support level is 33879.29
HOW TO TRADE DOW JONES IN THIS WEEK
After once more retreating to the downside, the Dow Jones began to move upward. It is currently trading at a resistance level; if this level is broken, additional upward movement is expected.