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Dow Jones Index Forecast Ahead of US Inflation Data

S&P 500
S&P 500

Dow Jones futures are rising ahead of the important US inflation numbers scheduled for later today. The index is trading at $33,655, which is a few points below its all-time high. It has already risen by more than 10% this year. The fear and greed index, on the other hand, has moved back to the neutral level of 54.

The Dow Jones and the S&P 500 futures are rising while the Nasdaq 100 index is sliding as investors wait for the US CPI data. At the same time, bond yields have risen, with the 10-year rising to 1.69% and the 30-year rising to 2.35%. 

The inflation numbers are important because they will provide hints about the future of interest rates in the US. On average, most analysts expect the data to show that the US CPI rose by 2.5%, the highest increase in more than a year. This growth is because of the recent stimulus and the overall reopening of the economy. 

While the rate will be above the Fed’s target of 2.0%, analysts expect that the bank will not shift its tone on interest rates. It has committed to maintaining an expansionary policy in a bid to support the economy. Meanwhile, the fear and greed index has declined to 54 while Bitcoin has hit its all-time high. The index is also waiting for the start of the earning season.

Dow Jones forecast

The Dow Jones index has surged recently and is trading at its all-time high. On the daily chart, it has moved above the 25-day and 50-day moving average while the momentum indicator has continued rising. With the bias of the fear and greed index being in the greed side, we should expect the DJIA index to keep rising. If this happens, the next key level to watch is the resistance at $34,000. However, a drop below $33,000 will invalidate this trend.

DJIA price chart

Dow Jones