Dow nears support as natural gas rally falters and EUR/JPY hits 1 ¼ year high
Macro Update
Wall Street closed lower as stronger-than-expected economic data, including falling jobless claims and an upward gross domestic product (GDP) revision, cast doubt on the pace of Federal Reserve (Fed) rate cuts, with the Dow Jones down 0.4%, the S&P 500 0.5%, and the Nasdaq 100 0.5%.
Fed officials offered mixed signals, with Chicago’s Goolsbee cautioning against cutting too quickly, Trump appointee Miran pushing for sharper reductions, and Powell stressing balance between inflation and jobs.
In Asia, stocks retreated after Trump unveiled new tariffs on drugs, trucks, and furniture, while traders scaled back rate cut expectations, boosting the dollar.
Dow Jones comes further off record high
The Dow Jones Industrial Average has been coming off its 46,714 record high for three straight days and dipped to 46,122 on Thursday.
Support below this level may be found between the 5 September high at 45,770, the August peak at 45,757 and last week’s low at 45,667. Were this area to be slipped through, a more significant retracement toward the July peak and early September low at 45,296-to-45,017 may ensue.
Resistance below the all-time high at 46,714 may be spotted around the 11 September peak at 46,137.