- UnitedHealth Group and Goldman Sacha were the biggest Dow Jones Index gainers of the day, and there's rising prospect of a Fed rate cut.
The Dow Jones Index (INDEXDJX: .DJI) rose by 483 points or 1.1% in Tuesday’s trading session as growing investor confidence in the US economic outlook brought tailwinds. The Index closed at 44,458 points, with the market increasingly confident that the incoming tariff regime will do little to disrupt global economic growth. In addition, US President Donald Trump’s scheduled meeting with Russia’s Vladmir Putin has added support to the positive outlook, promising a calming of the geopolitical risk.
Dow Jones’s strong performance was supported by an uptick by the Index’s largest stock by weight, Goldman Sachs, and UnitedHealth Group. The former ended the session up by 3.5% while the latter closed with gains of 3.7%, on a day when 21 of the 30 Dow Jones Index Component stocks recorded gains.
Also, traders are increasingly betting on more accommodative monetary policy, with high expectations that the Federal Reserve will cut interest rates in view of recent US economic data, including soft inflation rate. The latest CPI data showed that consumer inflation rose by just 0.2% in July and 2.7% year-on-year, which was lower than the forecast estimate figure of 2.8%. A lower interest rate regime is deemed as a much-needed tool to boost the current economy amid a significant spike in unemployment in July.
Dow Jones Index Prediction
The Dow Jones Index pivot mark is at 44,360 points and the momentum calls for further upside. The Index will likely meet the first resistance at 44,790 points However, extended bullish conditions will break above that level and could push the index to test the second resistance at 45,020 points.
Alternatively, the momentum could shift to the downside if the Index breaks below 44,360. In that case, the Dow Jones Index could find primary support at 44,015 points. Breaking below that level will invalidate the upside narrative, with the Index potentially going on to test 43,590.
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