- Dow Jones follows other indices lower on Friday.
- UoM Consumer Sentiment Index ticked lower.
- June rate cut bets have edged down to 60%.
The Dow Jones Industrial Average (DJIA) is experiencing a decline of approximately 0.5% as Friday’s trading session approaches its close, with US equities showing a broad downturn. Weakness in the technology and telecommunications sectors is weighing heavily on the averages, limiting any gains that could offset losses as investors prepare for the weekend.
According to the CME’s FedWatch Tool, futures markets are currently pricing in a nearly 41% probability of no change in interest rates by the Federal Reserve (Fed) at the upcoming June rate decision. Moreover, there is a more than 90% likelihood of no rate cuts by the Fed in both the March and May monetary policy meetings. The Fed is scheduled to announce its rate decision and update the Dot Plot, which summarizes rate projections, next Wednesday at 1800 GMT.
The Technology Sector is in the midst of a four-day decline since reaching its peak on Monday, with a further 1.3% decrease observed on Friday. Following closely behind, the Communications Services Sector has also experienced a 1.2% drop. Although the Materials Sector is showing a modest gain of 0.23% on Friday, it is insufficient to offset the overall losses in the market.
Dow Jones news
On Friday, most of the equities listed on the Dow Jones Industrial Average (DJIA) closed in negative territory, with Salesforce Inc. (CRM) leading the decliners by shedding nearly 3% to close at $294.33. Amazon Inc. (AMZN) and Microsoft Corp. (MSFT) followed suit, with declines of 2.42% and 2.07%, respectively, at the closing bell.
However, there were a few bright spots amid the losses. 3M Co. (MMM) managed to stage a late recovery, closing up 1.82% for the day at an even $105.00. Caterpillar Inc. (CAT) also performed relatively well, posting a gain of 1.48% and finishing just shy of $347.00 per share by the end of Friday’s trading session.
While the Dow Jones Industrial Average experienced a decline of around 0.6% on Friday, it fared better compared to its peer indices. The NASDAQ Composite dropped by a full percentage point, and the S&P 500 slid 0.7% during the same trading period.
Dow Jones Industrial Average technical outlook
The Dow Jones Industrial Average (DJIA) faced downward pressure after encountering resistance around the key psychological level of 39,000.00, leading to a decline that bottomed out at 38,606.59 during the trading session. Despite this pullback, the index remains above the low point recorded earlier in the week, which was near 38,470.00. However, it is currently down 1.4% from the peak levels reached earlier in the week, around 39,225.00.
Although the Dow Jones is hovering close to its all-time highs set in February at 39,281.86, it has maintained a significant gain of over 19% from the lows observed in October, which were near 32,475.00.
Dow Jones Industrial Average, 5-minute chart
