Dow Futures Down 160 Pts; Investors Eye Fed Meeting as Month Ends
U.S. stocks are seen opening lower Monday, handing back some of the month’s strong gains as investors await a crucial policy-setting meeting by the Federal Reserve.
At 07:00 ET (11:00 GMT), the Dow Futures contract was down 160 points or 0.5%, S&P 500 Futures traded 22 points or 0.6% lower, and Nasdaq 100 Futures dropped 80 points or 0.7%.
Yet, despite these expected losses, the main U.S. equity indices are all on course to post a positive October, snapping a two-month losing streak. The blue-chip Dow Jones Industrial Average is leading the way, currently up over 14% this month, which would be its best month since 1976.
These gains have come despite earnings disappointments from a number of the tech giants, on raised hopes that the Federal Reserve will flag a slower pace of interest rate hikes after the conclusion of its two-day meeting on Wednesday.
The Fed is widely expected to raise interest rates by 75 basis points for a fourth straight time, and investors will be studying Fed Chairman Jerome Powell’s comments carefully for any clues over future hikes.
The U.S. central bank could increase interest rates to as high as 5% by March 2023, Goldman Sachs said Sunday, 25 basis points above its earlier prediction, from the current range of 3%-3.25%, if it does not see “real changes in behaviour.”
DOW JONES Technical Analysis: Daily Chart
In the daily charts, DOW JONES is trading in an up channel. DOW JONES is currently trading above all SMA.
RSI is in over bought zone which indicates mild bearishness. MACD is currently above zero which indicates bullishness.
Its immediate support is 32407.00 & the resistance level is at 33314.00.
DOW JONES INDEX will trade in an up channel until there is trend reversal.
How to Trade DOW JONES INDEX this Week:
DOW JONES INDEX will follow the uptrend until there is trend reversal. So, remain bullish on DOW JONES INDEX.
