Dow Jones & Nasdaq 100 Steady as Asian Markets Eye BoJ
Meanwhile, fixed asset investment and industrial production also pointed to a loss of economic momentum. The Hang Seng Index fell 0.85% to 25,756 as traders reacted to the data. Beijing’s recent pledge to roll out fresh stimulus cushioned the downside.
Fed Speakers in Focus Ahead of Crucial US Economic Data
Futures posted gains despite the weak Chinese data and rising JGB yields. The Dow Jones E-mini advanced 136 points, the Nasdaq 100 E-mini gained 60 points, while the S&P 500 E-mini climbed 18 points.
Later on Monday, FOMC members will influence risk sentiment as the dust settles from last week’s interest rate decision and the Fed’s dot plot. FOMC member Stephen Miran and New York Fed President John Williams are due to speak. Support for a March rate cut would likely lift sentiment, supporting the bullish short- to medium-term outlook for US stock futures.
Notably, NY Fed President Williams reignited bets on last week’s rate cut on Friday, November 21, triggering a market rebound from September lows.
According to the CME FedWatch Tool, the chances of a March Fed rate cut increased from 46.5% on Friday, December 5, to 49.5% on December 12. Dovish rhetoric would support a recovery of Friday’s losses, bringing 2025 highs into view.
Key Technical Levels for Dow Jones, Nasdaq 100, and S&P 500
Despite Friday’s sell-off and modest morning gains, the Dow Jones E-mini, the Nasdaq 100 E-mini, and the S&P 500 E-mini remained above their 50-day and 200-day EMAs, indicating a bullish bias.
Near-term trends will hinge on Fed rhetoric, 10-year US Treasury and JGB yields, USD/JPY trends, upcoming US data, and the BoJ interest rate decision. Key levels to monitor include:
Dow Jones
- Resistance: December 12 record high of 48,917, and then 49,000.
- Support: 48,750, 48,000, 47,500, and then the 50-day EMA (47,217).