DOW JONES INDUSTRIAL AVERAGE CHURNS ON WEDNESDAY AS INVESTORS WAIT FOR SIGNS
- Dow Jones falls back below 38,400 and then recovers as risk appetite wobbles.
- US Durable Goods Orders missed forecasts, but still climbed.
- US GDP, PCE inflation are key data highlights for the rest of the week.
The Dow Jones Industrial Average (DJIA) stumbled on Wednesday, falling from recent highs near 38,550.00 as investors ease off of Tuesday’s risk appetite. The index recovered heading into the late American trading session as US data continues to vex financial markets that remain overwhelmingly focused on rate cuts from the US Federal Reserve.
US Durable Goods Orders in March failed to meet modelled forecasts, with Durable Goods Orders Excluding Defense rising 2.3% versus the forecast 2.5%, and Durable Goods Orders Excluding Transportation rising only 0.2% against the forecast 0.3%. Despite missing forecasts, both figures beat their previous prints handily (1.5% revised from 2.2% and 0.1% revised from 0.5%, respectively). Headline Durable Goods Orders rose 2.6% MoM compared to the previous month’s 0.7% (revised from 1.4%).
The uptick in US activity throws a wrench in market hopes for an accelerated path towards rate cuts that were reignited on Tuesday after the US’ Purchasing Managers Index (PMI) figures missed expectations. Markets will now to turn to Thursday’s US Gross Domestic Product (GDP) and Friday’s US Personal Consumption Expenditure (PCE) inflation. US GDP is expected to ease to 2.5% for the annualized first quarter from the previous 3.4%, while Core US PCE Price Index inflation is expected to hold steady at 0.3% MoM in March.
Dow Jones news
The Dow Jones is recovering from an early US session dip, which briefly drove it back below 38,300.00. The major equity index is now churning near 38,500.00. Earnings season is in full swing, with Meta Platforms (META), IBM (IBM), and Chipotle (CMG) all reporting earnings after market close on Wednesday. Corporate earnings are helping to bolster equity valuations, but batter rate-cut hopefuls continue to weigh on investors’ outlook, crimping recent gains.
Disclaimer: The content above represents only the views of the author or guest. It does not represent any views or positions of FOLLOWME and does not mean that FOLLOWME agrees with its statement or description, nor does it constitute any investment advice. For all actions taken by visitors based on information provided by the FOLLOWME community, the community does not assume any form of liability unless otherwise expressly promised in writing.
FOLLOWME Trading Community Website: https://www.followme.com
Hot
No comment on record. Start new comment.