- The Dow rose 0.71%, rebounding as softer data fuels speculation on interest rate cuts.
- They are followed by the S&P 500 and Nasdaq, which gained more than 0.6% amid broad optimism.
- Amazon shines with 6.5% growth; Apple lags with a 1.5% decline on feeble sales in China.
The Dow Jones Industrial Average (DJIA) posted a solid gain of almost 300 points, or 0.71%, on Friday on softer-than-expected economic data, confirming investors’ hypothesis that the Federal Reserve will continue to ease monetary policy. Wall Street turned around from Thursday’s losses and surged ahead of the weekend.
Data released by the U.S. Bureau of Labor Statistics (BLS) showed that severe hurricanes and union strikes disrupted wages in nonfarm sectors in October. The American economy created 12,000 jobs, less than estimated at 113 thousand. Despite this, the unemployment rate remained at 4.1%, pending further data.
The Institute for Supply Management (ISM) recently revealed that manufacturing activity declined for the seventh consecutive month, reaching its lowest level since July 2023. The ISM Manufacturing PMI fell from 47.2 to 46.5, missing forecasts of 47.6.
Meanwhile, Wall Street posted solid gains, with the S&P 500 index following the Dow Jones rally, gaining more than 0.63% to 5,741.45, while the Nasdaq rose 0.75% to 18,230.29.
Next week, the American stock exchange will be busy with the US presidential elections, which will take place on November 5. Traders will also be watching the Federal Reserve’s monetary policy on November 6-7 and Fed Chairman Jerome Powell’s speech. The CME FedWatch Tool shows the odds of winning the Fed’s 25-basis-point rate cut reaching 95%, up from 97% a day ago. This would leave rates in the range of 4.50%-4.75%.
Dow Jones News
In stock news, Amazon ( AMZN ) rose 6.5%, helped by sturdy retail sales that boosted the company’s earnings above estimates. Apple ( APPL ) took a hit in China and fell 1.5%, while Chevron ( CVX ) beat estimates for earnings per share, production and sales. Meanwhile, Boeing ( BA ) shareholders breathed a sigh of relief as the company’s shares rose 3% and the ongoing strike comes to an end.
The leading stock in the Dow Jones Index is Intel (INTC) up 6.92% at $23.01 per share, closely followed by Amazon up 6.02% to $197.62 and Boeing up 2.99% to $153.77. Apple shares lagged behind, down 1.63% to $222.22; Verizon (VZ), down 1.51% at $41.50; and Dow (DOW), which is trading at $48.87 a share, down 1.03%.
Dow Jones Price Forecast
The Dow Jones Industrial Average rose above 42,000 after hitting a weekly low of 41,692, below the 50-day uncomplicated moving average (SMA) of 41,943. This initially increased the chances of breaking the September 2 support high at 41,564, before area of ​​41,000. However, buyers have emerged and pushed the US stock index higher ahead of next week’s US presidential election.
If the Dow closes above 42,000 buyers daily, it can still hope to break the October 30 low that caused resistance at 42,122. Once cleared, the next stop will be October 31, high of 42,460. With continued strength, 42 could be reached 500 before testing 43,000.
The momentum is bearish and the Relative Strength Index (RSI) remains below the neutral line. However, in the tiny term, a compact jump that threatens to break the neutral line indicates that buyers are gathering strength.
