Dow Jones Index Forecast: Dow Futures Slide Ahead Of FOMC
Dow Jones (INDEXDJX: DJI) Index has soared to fresh 18-month highs due to the ongoing bullish sentiment in the markets. However, Dow futures are showing some weakness ahead of the FOMC announcement today. The volatility is expected to increase once the New York session opens.
On Tuesday, Dow Jones Industrial Average extended its gains and closed the day after rising 0.08%. This translated into an overall weekly gain of 0.60% for the benchmark index. Since the start of 2023, Dow has been up 6.8%. However, the index still remains 4.3% down from its all-time high.
Dow Futures Turn Red On Wednesday
On Wednesday, Dow futures slid 0.21% after losing 73 points before the start of the US trading session. US equities will remain volatile today as the US Federal Reserve will announce the outcome of the ongoing FOMC meeting today.
Analysts are expecting the central bank to hike the interest rates further by 25 basis points. This will be the first rate hike after the previous FOMC meeting, which concluded with a temporary pause in rate hikes. It seems that a 25 bps rate hike is already priced in. A different outcome than this can cause a major move in Dow Jones Index and the underlying equities.
Dow Jones Index Needs To Reclaim 35,600 Level
The following INDEXDJX: DJI chart shows that the benchmark index is heading for a retest of the 35,600 resistance level. This is the final major resistance before the all-time high of 37,000. Therefore, a pullback from this level won’t be surprising at all.
In case of a pullback from the current level, Dow Jones Index may retest the 34,230 level once again to flip it into support. The broader market sentiment remains bullish in the US as tech stocks like Apple, Amazon, Google, and Tesla are showing good strength.
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