As bank fears increase, the Dow declines more than 300 points and turns negative for the year.
As concerns about regional bank contagion resurfaced on Thursday, stocks fell. Following its meeting on Wednesday, the Federal Reserve raised interest rates by 25 basis points and provided commentary.
The Dow Jones Industrial Average fell 309 points.
On Thursday, the Dow’s year-to-date performance fell 0.1%. The Dow was dragged down by shares falling in American Express, Goldman Sachs, Disney, Boeing, and Disney.
According to Cantor Fitzgerald CEO Howard, the Federal Reserve is most likely finished changing interest rates in either a higher or lower direction for a while.
The head of financial services told CNBC’s “Squawk Box” that a recent rush of deposits out of banks has acted as the equivalent of 100 basis points of hikes, removing the need for the central bank to take more steps to combat inflation.
Thursday’s morning’s results fell short of Wall Street’s projections.
For the week ending April 29, there were 242,000 claims for unemployment benefits, which was more than Dow Jones’ forecast of 236,000. Contrary to expectations for a 1.9% loss, worker productivity fell 2.7% in the first quarter, while unit labour costs—a measure of inflation—rose 6.3%, faster than the 5.5% forecast.
The drops in Boeing, Disney, Goldman, American Express, Caterpillar, and JPMorgan, all of which contributed 15 points or more to the average’s decline, were the ones that harmed the Dow Jones Industrial Average the most as it turned negative for the 2023 early on Thursday.
DOW JONES TECHNICAL ANALYSIS DAILY CHART:
Dow Jones is currently trading in down channel.
Dow Jones is currently trading below all SMA.
RSI is in buying zone which suggests bullishness and Stochastic is suggesting down trend.
Immediate resistance is at 33345.97 & its immediate support level is 33198.92
HOW TO TRADE DOW JONES IN THIS WEEK
After making one more attempt to move upward, the Dow Jones reversed its upward trend and began to decline. From the same level, it made a double top. Price is currently trading near a support level; if broken, further decline is expected.