Dow Jones Industrial Average is up by 141.59 points or 0.41% to its current level of 34,464.64. The rallying has been fuelled by the strong US labor market data and subsequent optimism on economic recovery.
On Thursday, the US Department of Labor indicated that initial jobless claims had dropped to 406,000 in the week ending on 22nd May. This is in comparison to the prior week’s 444,000 and the forecasted 425,000. Notably, the number of individuals filling for unemployment benefits has been reducing steadily over the past four weeks. The recent data is the lowest since the onset of the coronavirus pandemic.
According to Goldman Sachs’ managing director, Chris Hussey, the heightened confidence in economic recovery is as a result of the positive job data and signs of rising inflation. S&P 500 is also trading higher by 0.12%.
Investors are also eyeing discussions in Washington after Republicans presented an infrastructure spending counteroffer of $928 billion. While the package could further boost economic recovery, it is significantly lower than Biden’s initial proposal of $1.7 trillion.
Technical Outlook
Dow Jones is at 34,464.64, which is a pullback from 34,612.29 earlier in the day. On a four-hour chart, the index is trading above the 25 and 50-day exponential moving averages. I expect it to find resistance at around 34,598 before rising further. On the flip side, it may decline to find support at 34,201.08.
Don’t miss a beat! Follow us on Telegram and Twitter.
Dow Jones Chart
Follow Faith on Twitter.