Stocks Rally as Dow Jones Surges Over 300 Points – 03 March 2023
03 Mar 2023
Dow futures advance by 60 points as the ISM non-manufacturing PMI is scheduled to release.
U.S. stocks are seen opening with small gains Friday, on course to register a positive week as investors digest fresh commentary from Federal Reserve policymakers ahead of the latest services activity data.
The Dow futures contract was up 60 points, or 0.2%.
The main equity indices closed Thursday with strong gains, boosted by Atlanta Federal Reserve President Raphael Bostic pinning his colors firmly to the post of a 25-basis-point hike later this month, and touted a pause on hikes by the summer.
The Dow Jones Industrial Average closed over 300 points, or 1.1% higher, its best day since mid-February.
The Fed is widely expected to raise rates again when it meets in two weeks’ time and again in May. Recent hotter-than-expected consumer price data has concerned the market that even more hikes would be needed to tame inflation.
Next week sees the February official jobs report, but attention Friday will be on the ISM non-manufacturing PMI for February at 10:00 ET (15:00 GMT).
“Remember that a surprise drop to 49.2 (i.e., recessionary territory) in the December read was the trigger for a dovish repricing in Fed rate expectations,” said analysts at ING, in a note. “Consensus is centered around a marginal decrease from 55.2 to 54.5, which would confirm speculation on recession is too premature and would continue to endorse the Fed’s hawkish rhetoric.”
There is also an array of Fed officials scheduled to speak at various times today, including Dallas Fed President Lori Logan, Atlanta Fed President Raphael Bostic, Fed Gov. Michelle Bowman, and Richmond Fed President Tom Barkin.
DOW JONES TECHNICAL ANALYSIS DAILY CHART:
Dow Jones is currently trading in the down channel.
Dow Jones is currently trading below 20&50 SMA.
RSI is in buying zone which suggests bullishness and Stochastic suggests an up trend.
Dow Jones’s immediate resistance is at 33115.70 & its immediate support level is 32949.45
HOW TO TRADE DOW JONES IN THIS WEEK
Dow Jones is trading in the down Channel; now it is at the resistance zone, if the price is rejected from the resistance level, we can see a downside. If it holds above the resistance level, we can see the upside.