- The Dow fell seven tenths of a percent on Friday.
- Stock markets are decelerating from recent election-driven gains.
- U.S. retail sales exceeded forecasts but continued to grow at a lower rate in October.
The Dow Jones Industrial Average (DJIA) has reversed its recent bull run, shedding more than 350 points to its low and giving back about 0.85% as investors grapple with an increasingly uncertain future. US retail sales beat expectations but still fell from previous data, and Federal Reserve (Fed) Chairman Jerome Powell this week sprayed chilly water on investors hungry for interest rate cuts, confirming the Fed is “in no rush” to cut further rates percentage.
The post-election “more Trump” trend will continue to unfold as the Trump campaign begins to unveil potential candidates for key official positions that former President Donald Trump aims to fill at the start of his second term in January. Pharmaceutical stocks unexpectedly fell on Friday after Trump’s team announced plans to nominate vaccine skeptic Robert F. Kennedy Jr. to head the U.S. Department of Health and Human Services. RFK Jr. has openly discussed its plans to completely ban several vaccines and other health products, a surprisingly hyper-regulatory move that faces initial enthusiasm from the broader market after Trump’s election victory that was expected to trigger further deregulatory efforts for the EU. public market.
U.S. retail sales rose 0.4% m/m in October, slightly above the forecast of 0.3%, but still down from the revised September rate of 0.8%. Core retail sales, or retail sales excluding car purchases, missed expectations, growing just 0.1% compared to the expected 0.3% and even further below last month’s revised release of 1.0%.
Dow Jones News
Despite piercing headline losses in key stocks, the Dow is roughly balanced on Friday, with about half of the major board stocks trading in positive territory. Disney (DIS) rose another 5.3% to $115 per share as the entertainment giant’s quarterly revenue rebounded stronger than many investors expected. Meanwhile, Amazon ( AMZN ) and Amgen ( AMGN ) fell about 4.5% on the day to $201 and $282 per share, respectively, as technology and biomedical stocks fell sharply at the end of the week.
Dow Jones Price Forecast
Despite a bearish extension on Friday that sent the Dow even deeper into the red this week, there is still plenty of room to fall before technical warnings begin to emerge. Upward pressure could also re-emerge on the charts at any time as investors continue to hope for a hold on record high territory.
The Dow Jones Index will end the week down 1.3% despite setting another recent all-time high at 44,485 earlier in the week. The closest technical barrier is at the 50-day exponential moving average (EMA) near 42,430.
