The Dow Jones Industrial Average closed lower in its recent trading at the intraday levels to record losses in trading on Tuesday. This was in a session characterized by fluctuation by -0.38%, for the index to lose about -129.64 points and settle at the end of trading at the level of 34,168.10, after its decline in Tuesday’s session with a rate of -0.19 *%.
Stocks lost early gains on Wednesday in another volatile session, after the Federal Reserve’s first meeting of 2022. It kept benchmark interest rates steady, but signaled that monetary policy would tighten soon.
Federal Reserve Chairman Jerome Powell said the Fed was “on his mind” to raise the Fed funds rate at its mid-March meeting but said policy makers also haven’t made a decision yet on the path of monetary support.
Instead, Fed officials will remain “smart” and leave it to upcoming meetings to decide how high the interest rate will be or the “significant cut” of the central bank’s close to $9 trillion budget. The reduction is due to start once the rate increases start.
Powell told reporters there was plenty of room to raise interest rates without hurting the labor market and did not rule out the possibility of raising rates by more than 25 basis points given the scope of the inflation challenge.
Markets remain eager for a clearer roadmap for tighter monetary policy, including details on how the Fed expects to shrink its balance sheet.
Technically, the index’s fluctuating transactions come because of its attempt to drain some of its clear over selling with the RSI indicators, especially with the beginning of a positive crossover in them. The bearish corrective trend dominates in the short term and was affected by the breaking of a major bullish trend line earlier, with the continuation of the negative pressure of its trading below the simple moving average for the previous 50 days.
Therefore, we expect the index to decline during its upcoming trading, especially in case it breaks the support level 33,833.30, to target after that the support level 32,953.47.
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