Upbeat US Data Boost the Dow Jones Index

The Dow Jones index is trading higher this Wednesday, but the upside move appears limited as the markets appear to be waiting for direction from Friday’s jobs data.

The Dow Jones index fell 369 points on Tuesday after long-term bond yields rose 6.7%, driving investment flows from the US stock market. Hawkish comments from St. Louis Fed Chairman and member of the FOMC board James Bullard reinvigorated expectations of an aggressive rate hike trajectory, further dampening the sentiment on the Dow.

However, the Dow Jones index has recovered all of Tuesday’s losses after the ISM Services PMI rose from 55.3 to 56.7 in July 2022, beating market estimates of 53.5. Factory orders also rose from 1.8% (an upward revision) to 2.0%, better than the estimates of a 1.3% growth. These data keep the Dow positive ahead of the NFP report. Traders are also watching the geopolitical events in Asia very closely, which has served to cap the day’s gains.

The Dow Jones index is up 1.05% as of writing. 

Leave a Reply

Your email address will not be published. Required fields are marked *