Dow hits all-time high, EUR/JPY 1 ¼ year high as natural gas price rally stalls
Overnight Summary
Wall Street ended mixed after the Federal Reserve (Fed) cut interest rates by 25 basis points, with the Dow Jones rising 0.6% while the S&P 500 and Nasdaq 100 slipped as investors assessed guidance for two more cuts this year.
Fed Chair Jerome Powell emphasised that risks to the labour market outweighed inflation concerns but refrained from signalling larger reductions, tempering hopes for faster easing.
Market breadth was weak, with decliners narrowly outpacing gainers despite elevated trading volumes.
Globally, the Bank of Canada (BoC) also cut rates, while the PBOC and Hong Kong Monetary Authority held steady, with decisions from the Bank of England (BoE) and Bank of Japan (BoJ) still ahead.
Dow Jones still trades in record highs
The Dow Jones Industrial Average hit yet another record high, this time at 46,261 after Wednesday’s 25 basis point Fed rate cut. The next upside target remains to be seen around the minor psychological 47,000 mark.
Good support below the April-to-September uptrend line and Tuesday’s low at 45,668 comes in around the 10 September 45,380 low.