Dow Jones index surpasses 35,000-point level with significant gains

Improved market appetite on diminished US interest rate hike possibilities

By Raed Alkhedr | @raedalkhedr | 31 August 2023

22Dow Jonesss
  • US quarterly GDP grew around 2.1%, down from 2.4%

  • Dow Jones index rises fourth day, crosses 35,000-point level

  • Markets await core PCE price index release today

Economic events impacting the movements of the US dollar and US stock indices

The US stock indices closed the Wednesday trading session in the green for the fourth consecutive day as market risk appetite improved due to reduced possibilities of further US interest rate hikes this year.

However, economic data within the United States came in worse than expected, indicating a faster-paced economic slowdown than anticipated. This has alleviated pressure on policymakers at the US Federal Reserve.

The quarterly US GDP recorded a growth of approximately 2.1%, compared to the previous reading of 2.4%. On the other hand, private US companies added fewer jobs than expected in August, with the economy adding 177K jobs, lower than the previous reading of 371K jobs.

Today, the markets are eagerly awaiting several important economic indicators, with a particular focus on the core Personal Consumption Expenditures (PCE) price index, which is the Federal Reserve's preferred inflation gauge.

The Dow Jones index ended the third session of the week on an upward note, nearing the 35,000-point level.

Key technical levels that could impact the movements of the Dow Jones index

The Dow Jones index is currently trending within an ascending channel and has successfully rebounded from the lower boundary at the 34,100-point level. It has also surpassed the resistance level at 34,700 points, contributing to the ongoing upward momentum and breaking through the 35,000-point level. There is a likelihood that the upward trend will extend to the 35,300-point level and potentially beyond, reaching 35,700 points.

However, if the index retraces from the current levels, it may find support around the 34,700-point level. If it drops below that level, it could extend the decline to test the support level at 34,330, which represents the lower boundary of the ascending channel within which it is currently moving.

Dow 8-31-2023