- Summary:
- Dow Jones Index Forecast: DJI is consolidating before targeting new yearly highs as multiple FOMC members are set to speak today.
The rally in the US equities appears to be cooling off as the Dow Jones index depicts indecision in the markets. The benchmark index of the blue chips was up a modest 0.03% at press time as the traders awaited cues from today’s speeches of the multiple FOMC members.
Many analysts are of the opinion that the US Federal Reserve is done with rate hikes. However, inflation is still far from the Fed’s target of 2%, which is the major argument of the opposite opinion holders.
On Tuesday, the index was still down almost 50 points from its Monday highs but still outperformed the other benchmarks like S&P 500 and Nasdaq 100. However, on a higher timeframe, Dow futures are still lagging as they have yet to hit a new yearly peak despite a strong rally in November.
If the Dow Jones Industrial average breaches the 35,680 points level and holds, it may continue to run till a new all-time high. However, that would only be possible if the Fed starts cutting the rates before the mid of next year.
