- The Dow Jones lost 400 points on Friday.
- Declines were recorded on the holiday markets, the Dow ended the week unchanged.
- Another midweek holiday next week will reduce market volumes.
The Dow Jones Industrial Average (DJIA) lost about 400 points on a tranquil Friday. Most investors are still out of the market over the holidays, and lean volumes have caused the Dow Jones to decline by about a full percent.
Holiday flows are in full swing in equity markets, with a cooling effect on the broad base in the long-term tech rally as investors raise stakes and take petite profits ahead of the move into the recent year. A sluggish data release schedule this week, followed by another midweek break next week, will keep stock indices delicate in the tiny term.
Traders continue to grapple with the Federal Reserve’s (Fed) recent shift toward expectations of smaller interest rate cuts in 2025 than previously expected. According to the Fed’s latest Summary of Economic Outlook (SEP), policymakers expect only further two-quarter-point rate cuts next year, dampening market expectations for a stronger decline in the benchmark rate.
Dow Jones News
Despite an overall tumultuous year that has seen Down Jones climb nearly 21.5% from the bottom to the top, the major equity index still has coal in store as December darkens and gives back forceful gains from November. All but five Dow stocks were in the red on Friday, with the loss led by Nvidia (NVDA) falling more than 2% and returning to below $137 per share.
Nvidia appears to have shrugged off recent reports that its latest AI-focused Blackwell chipset may have experienced an overheating issue, but fresh woes have emerged for the AI-fueled tech rally as investors weigh the prospect of tighter restrictions on China’s access to U.S…. produced silicone solutions. Excessive Chinese demand for recently developed AI-oriented chipsets could keep Nvidia’s earnings expectations flat if regulations hamper trade.
Dow Jones Price Forecast
It looks like the Dow Jones index will take a rest in 2024 after falling for three weeks in a row. The DJIA is down almost 5% from record highs above 45,000, testing the waters south of the 43,000 level.
The Dow Jones Index has fallen below its 50-day exponential moving average (EMA) near 43,345 for the second time in as many months, but price action continues to remain well above the 200-day EMA near 40,960 after bids hit a technical minimum level near 42,000.
