- The Dow Jones remains subdued on Monday, hovering around 43,800.
- Investors are in wait-and-see mode ahead of what is widely expected to be the Federal Reserve’s final rate cut of 2024.
- Gains in telecom and retail stocks are balancing declines in major tech and healthcare sectors.
The Dow Jones Industrial Average (DJIA) remains under pressure, trading near 43,800 as investors prepare for the Federal Reserve’s final policy meeting of 2024. The central bank is widely expected to deliver a 25 basis point rate cut, marking the last adjustment before the holiday season.
Mixed US PMI data on Monday added to market uncertainty. The Services PMI jumped to 58.5 in December, the highest level since November 2021, beating the 55.7 forecast and November’s 56.1. In contrast, Manufacturing PMI fell deeper into contraction territory at 48.3, missing expectations of 49.4 and below November’s 49.7.
This week’s economic calendar is packed with major US data releases, including Retail Sales on Tuesday, GDP figures on Thursday, and the PCE Price Index on Friday. However, the Fed’s two-day policy meeting, concluding on Wednesday, remains the main event. In addition to the expected rate cut, the Fed will release its updated dot plot, providing insights into interest rate expectations for 2025.
Dow Jones News
The Dow remains rangebound on Monday, with gains and losses evenly split among its components. UnitedHealth Group (UNH) is down 3.7%, trading near $501 per share, while Honeywell International (HON) is up 3.6%, trading near $236 per share, on reports the company may spin off its aerospace division.
Dow Jones Price Forecast
The Dow continues to drift lower, starting the week near the bottom of its recent trading range. The index has posted losses for seven consecutive sessions and is approaching the 50-day Exponential Moving Average (EMA) near 43,500.
Despite near-term weakness, the Dow maintains its broader bullish trend, holding above the key 43,000 support level and closing higher in 10 of the past 12 months. The longer-term momentum suggests the index is still well-positioned, even as short-term volatility persists.
