(MENAFN– Daily Forex)
- The dow jones Industrial Average rose in its recent trading on the intraday levels, to achieve strong gains in its last sessions by 1.09%.
- The index added about 368.95 points, to settle at the end of trading at the level of 34,086.05 after the index fell during Monday’s trading by -0.77. %.
- The index recorded gains during the month of January, at a rate of 2.8%.
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The stock market ended the first month of 2023 with healthy gains, despite widespread concern that the economy may be on the brink of recession.
The Federal Open Market Committee kicked off its two-day rate-setting monetary policy meeting on Tuesday, with near-certain expectations of a quarter-percentage-point hike. Eyes are on comments to be released in the bank’s statement and press conference with Chair Jerome Powell following the rate decision.
Traders also expected a further quarter-point hike in March, followed by a pause and then one or two cuts before the end of the year. However, Fed policymakers from at least December don’t all see rate cuts until 2024.
On the economic data front, growth in US labor costs slowed in December, suggesting that the Fed’s aggressive approach to taming inflation is likely to ease on Wednesday.
An article by a well-sourced Fed reporter from the Wall Street Journal noted that employment cost data could influence central bank decision-making going forward.
The S&P CoreLogic Case-Shiller Index, which measures home prices in 20 cities, fell 0.5% in November, the fifth consecutive month of decline, matching expectations.Dow Jones Technical Analysis
Technically, the index’s rise came amid the continuation of the positive pressure for its trading above the simple moving average for the previous 50-day period. Under the control of a bullish corrective wave in the short term along a slope line, as shown in the attached chart for a (daily) period.
Therefore, our expectations indicate more rises for the index during its upcoming trading, but on the condition that it must first surpass the important and stubborn 34,281.36 resistance level, to assure us of its determination to continue the rise, to then target the first resistance level at 35,361.36.
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