The Dow Jones Industrial Average jumped during its recent trading on intraday levels. It achieved sharp gains in its last sessions by 2.18%, to add the index to it about 737.23 points. It settled at the end of trading at the level of 34,589.77, after rising slightly during Tuesday's trading by 1%. It reached 0.01%, to officially exit the blue-chip stock index from the bear market, and closed up by 20.4% from its lowest level, which it recorded on September 30, 2022. The index advanced during the month of November, by 5.3%.
"The time for adjusting the pace of rate hikes may come as soon as we meet in December," Federal Reserve Chairman Jerome Powell said in a speech to the Brookings Institution on Wednesday.
He said the final level of the Fed's benchmark interest rate should be higher than he thought a few months ago, and tried to keep any talk of rate cuts off the table.
After those comments, futures traders assess a 75% chance that the Fed will raise interest rates by 50 basis points at its December meeting, up from a 65% chance before Powell's comments, while there is a 25% chance of a 75 basis point increase. Basis.
Meanwhile, according to a Federal Reserve survey known as the Beige Book, the US economy grew steadily through the fall and inflation eased slightly, but many companies expressed "greater uncertainty or growing pessimism" about the year-end outlook.
Data released on Wednesday morning also showed that job opportunities in the United States fell to 10.3 million in October, in another sign of calming the labor market as the economy slows, but that reading may not be enough to satisfy the Federal Reserve, and the Labor Department said job listings. Decreased from 10.7 million in September.
ADP said that the private sector added about 127 thousand jobs in November, while it was expected to increase by 190 thousand jobs. In other data, the GDP figures for the third quarter were revised to show an annual rise of 2.9% versus the preliminary estimate of 2.6%.
The closely watched Labor Department non-farm payrolls data is scheduled for release on Friday, while one of the Fed's most watched inflation measures, the Personal Consumption Expenditure Index, will be released on Thursday.
Dow Jones Technical Outlook
- The index succeeded, with its recent rise, in breaching the important resistance level 34,281.36, that resistance that we had referred to in our previous reports.
- This is in light of its impact on the breach of a bearish corrective slope line in the short term earlier, as shown in the attached chart for a (daily) time period.
- The positive support continued for its trading above its simple moving average for the previous 50-day period, and the index's rise came despite the presence of negative signals in the relative strength indicators.
Therefore, our expectations indicate more rise for the index during its upcoming trading, especially as long as it is stable above 34,281.36, to target the first resistance levels at 35,372.26.
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