Today, the Dow Jones Index experienced a decline of more than 100 points, likely due to rising crude oil prices and concerns about global economic growth. This was influenced by the recent release of the purchasing managers’ index data for China, which showed a decrease in services production expansion, reaching its lowest level in 8 months. In response, Beijing has introduced new measures to stimulate its struggling real estate sector and has established a government body to assist the private sector. As a result of the risk-off sentiment, the dollar reached its highest level since March, while Treasury yields continued to rise. However, the US economy has remained resilient, with factory orders in the country falling less than anticipated last month.
Meanwhile, oil prices rose after Saudi Arabia and Russia announced that supply cuts would be extended, bringing US crude to its highest level since 2023. Standard contracts rose by 1.3%, closing at around $87 per barrel, causing the energy sector to rise, while the… The industrials, materials, and utilities sectors underperformed as investors worried that the Fed would keep interest rates too high for too long, despite Fed Governor Waller’s statement that ‘there’s nothing that says we need to do anything imminently anytime soon, so we can ‘Just sit there and wait for the Fed to decide.’ ‘Collect data and see if things continue.’
Overall On the market
Chinese stocks fell. The Shanghai Composite Index fell nearly 1%, and Hong Kong’s Hang Seng Index lost more than 2%. Elsewhere, Japan’s Nikkei 225 index advanced slightly and the European Stoxx Europe 600 index wavered. An index of Chinese stocks listed in the United States fell more than 2%.
Examining the charts (Dow Jones Index).
Selling pressures are still pressuring the industrial index to touch its lowest levels in a week, thus closing below the moving averages for a period of 20 and 50 days on the intermediate time intervals, as the supply area around the 35,000 levels succeeded in pushing the price back down and stopping further surges, as the index trades today around levels The support is 34,565 points, also approaching the moving averages in the early hours of the day to give signals of weak opinion strength on the index. The index is likely to continue sliding during this week’s trading as the index awaits manufacturing sector data later in the day, thus targeting the support levels around 34160, in the event of a breakout, it targets 33700 points
