The Dow Jones Industrial Average eased in early Monday trade, pointing to a modest pullback after Friday’s record highs. Futures signaled a softer open as investors digested Fed Chair Jerome Powell’s Jackson Hole remarks and considered whether the recent run-up left equities vulnerable to a near-term correction.
Did Powell’s Remarks Change Market Sentiment?
On Friday, Powell surprised traders with an unusually direct hint that a rate cut could come as early as September. That sparked a furious rally across equities, driving the Dow to fresh all-time highs. But the same words are now prompting caution. Investors are asking whether markets priced in too much, too fast, especially with earnings season nearly over and macro data still mixed.
How Is the Dow Trading Today?
The Dow’s early dip suggests some of last week’s euphoria is being unwound. At the same time, rotation is evident: technology and growth names are cooling, while defensives are seeing better support. The tone is more about consolidation than panic, as traders lock in profits ahead of a data-heavy week.
- Pre-market price: $21.87
- Immediate resistance: $22.00, then $22.50 if bulls regain momentum
- Support zones: $21.60 near-term, with a deeper floor at $21.00
Are Traders Bracing for Nvidia Earnings?
Another reason for the cautious tone in futures is Nvidia. The chipmaker reports results this week, and after powering much of 2025’s market rally, expectations are sky-high. Any hint of slowing AI demand could spill over into the broader tech sector and weigh on the Dow, S&P 500, and Nasdaq alike. That looming catalyst is giving traders one more reason to fade Friday’s highs and lock in profits before the numbers hit.
What’s Next for the DJIA?
The big question is whether Friday marked the start of a lasting Fed-fueled leg higher or just a short squeeze that needs to cool off. If the index can hold above support and absorb today’s dip, bulls will argue that Powell’s pivot keeps the path open toward further records. If not, the correction narrative will gain traction, especially if upcoming inflation and jobs data fail to confirm the soft-landing story.
For now, the Dow is less about collapse and more about digestion, markets testing how much fuel Powell really gave them.
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