The Dow Jones Industrial Average (DJIA) took a slight dip during a quiet Friday trading session. There wasn’t much economic data to move the markets, so investors stayed focused on the possibility of the Federal Reserve cutting interest rates in the near future. The Dow continued its slow downward trend, dropping further below 44,000 and marking its seventh consecutive losing day.
U.S. export and import prices came in better than expected but had little effect on the market as investors now shift their attention to more important economic reports coming next week. The U.S. will release new Purchasing Managers Index (PMI) data from S&P Global on Monday, followed by November retail sales figures on Tuesday. Retail sales are expected to rise slightly from 0.4% to 0.5% compared to the previous month.
U.S. inflation picked up in November, based on the latest data, but it hasn’t changed investors’ expectations. Most investors still believe the Federal Reserve will cut rates by 0.25% at its next meeting on Wednesday, December 18. According to economists, there is a 97% chance that the Fed will go through with this rate cut.
Dow Jones Update
The Dow Jones stayed mostly quiet, but some tech stocks saw big losses. Nvidia (NVDA) dropped about 2.5% to $134 per share as the recent tech rally slowed. On the flip side, UnitedHealth Group (UNH) rose 1.2% to climb back above $522 per share after losing ground earlier this week.
Dow Jones Price Outlook
The Dow Jones dropped over 80 points on Friday, making it about 3% down from its recent highs above 45,000. Even with the seven-day losing streak, the Dow is still considered to be in a bull market, staying above its 50-day Exponential Moving Average (EMA), which is currently around 43,490.
The recent downward pressure may soon lose steam. The Dow has shown a strong ability to bounce back from dips in the past 12 months, especially when it touches its moving averages. Investors will likely look for opportunities to buy near the 50-day EMA. However, if the Dow drops below its recent low near 43,000, it could spark more selling.
