The Dow Jones Industrial Average (DJIA) showed signs of recovery on Tuesday, gaining close to 500 points after a period of steep declines. Investors are regaining their footing following a broad downturn in key US economic data, sparking fears of a recession within the US and impacting market sentiment.
Despite the recent recovery, the Dow Jones is still significantly below its recent peak near 41,200.00, with investors facing challenges to push prices back up. While US economic data has stabilized for now, the possibility of rate cuts from the Federal Reserve (Fed) remains a key focus for investors.
Market expectations have priced in a rate cut in September, with odds of a double cut at 50 basis points. This sentiment suggests that the Fed may implement a total of four quarter-point cuts by the end of the year, with no chance of holding rates steady until 2024.
Dow Jones News and Technical Outlook
Most of the Dow Jones index is in positive territory on Tuesday, with Intel Corp. (INTC) leading losses after missing revenue estimates and reducing forward guidance. The company announced layoffs and a suspension of dividend payouts following a decline in revenues.
Technically, the Dow Jones remains above the 200-day Exponential Moving Average (EMA) but is still far from its all-time highs set in July. Buyers will need to work towards pushing prices above key levels to reach record peaks.
Dow Jones Daily Chart
The Dow Jones Industrial Average is one of the oldest stock market indices, consisting of the 30 most traded stocks in the US. It is influenced by company earnings, macroeconomic data, interest rates, and inflation, impacting investor sentiment and market trends.
Investors can trade the DJIA through ETFs, futures contracts, options, and mutual funds, providing various avenues to gain exposure to the index.