Dow Jones has hit a record high after Wednesday’s data showed that US inflation rose at a slower pace than expected in July. According to the US Bureau of Labor Statistics, consumer prices rose by 0.5% compared to the prior month’s 0.9%. With the exclusion of the volatile energy and food components, core CPI came in at 0.3% MoM. The figure is lower than the forecasted 0.4% and the previous 0.9%.
Dow Jones ended Wednesday’s session at a new record high as a reaction to the US inflation data. At the time of writing, it was up by 0.62% at 35,484.98. Notably, the index has been on an uptrend since the beginning of the year as investors bet on economic recovery. During that timeframe, it has surged by about 17.80%.
After dipping to a one-month low of 33,726.54 in mid-July, Dow Jones has risen by 5.24%. On a four-hour chart, it is trading above the 25 and 50-day exponential moving averages. In the near term, I expect the index to ease at around 35,500 as the bulls gather enough momentum to push it to the next target at 36,000.
On the flip side, it may ease further to find support along the 25-day EMA at 35,096.19. Below that level, the support will likely be along the 50-day EMA at 34,916.77.