Major indices shoot higher, led by the Dow
The level of 33,950 could pose a significant barrier to further increases in the Dow Jones
The US Consumer Price Index has shown an increase on an annual basis.
Initial jobless claims remained stable at 209,000 claims.
The recent rise in US Treasury bond yields may reduce the urgency for interest rate hikes.
Economic events and data influencing the movements of US stock market indices.
US stock market indices closed Thursday's session with a noticeable decline, erasing the earlier gains made after the release of key inflation data.
In this regard, the data released indicated a 3.7% increase in the US Consumer Price Index on an annual basis in September, which is the same reading as in August. However, it exceeded the expectations of 3.6%. The index also recorded a monthly increase of 0.4%.
On the other hand, data from the US Department of Labor showed that initial jobless claims remained stable at 209,000 claims for the week ending October 7th.
Neil Kashkari, a member of the US Federal Reserve, stated that the recent increase in long-term bond yields implies that the central bank should take a less aggressive stance in the near future.
It is worth mentioning that several officials from the Federal Reserve have pointed out that the recent rise in US Treasury bond yields may reduce the necessity for interest rate hikes.
The Dow Jones index closed Thursday's session with a decline of approximately 0.67%, nearing the 33,628 level.
Key pivot levels and technical factors affecting the Dow Jones index.
The Dow Jones index attempted to test the resistance level at 33,950, but prices retreated to test the support level at 33,450. It successfully rebounded from that level, forming a right shoulder for a potential inverted head and shoulders pattern.
If the index manages to surpass the resistance level at 33,950, which represents the neckline of the pattern, it may contribute to further upward movement towards the levels of 34,400 and then 34,700 points.
However, if the index fails to break above the resistance level at 33,950, it may decline and test the support level at 33,450. Breaking below this level could potentially extend the downward movement to the levels of 33,000 points.