Dow Jones Industrial Average Forecast: Higher oil prices tank stock market

  • 📰 FXStreetNews
  • ⏱ Reading Time:
  • 63 sec. here
  • 3 min. at publisher
  • 📊 Quality Score:
  • News: 28%
  • Publisher: 72%

Business Business Headlines News

Business Business Latest News,Business Business Headlines

The Dow Jones Industrial Average (DJIA) fell 0.56% on Tuesday in the week’s first outing after the Labor Day market close. On Wednesday, Dow futures

US Treasury yields fall across maturities, except for 3-month bill.UK, China, Germany experience drop in service sector dynamism simultaneously.fell 0.56% on Tuesday in the week’s first outing after the Labor Day market close. On Wednesday, Dow futures continue to slide alongside the entire US equity market. The Dow, NASDAQ 100 and S&P 500 all see their futures drifting about 0.2% lower.are sending shivers down the spine of global equity markets this week.

"If the oil price persists at current levels, it may slow disinflation rather than reignite inflation,” said UBS analyst Paul Donovan on Tuesday. The worry is that these contractions may be contagious. If the US ISM Services PMI for August shows contraction, then all hell will break loose. Analysts far and wide will say it foreshadows a coming global recession.

"[T]he curve remains very inverted, with longer tenor yields anticipating falls in official rates in the future. That’s a normal state of affairs. But as long as the economy continues to motor along, the wisdom of having many rate cuts at all is being questioned by the market. Less future rate cuts raise the implied floor being set by the fed funds strip. That floor continues to edge higher.”The Dow Jones index seems to be rolling over once again.

Another important hint is how the Dow index acts around 34,712. That was the high from December 13, 2022, that took most of 2023 to retake. A break above that level could mean that the market has forgotten about high oil prices or service sector weakness and is once again making a run at 35,200.Information on these pages contains forward-looking statements that involve risks and uncertainties.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 14. in BUSİNESS

Business Business Latest News, Business Business Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Stock Market Today: What to WatchLive coverage of what's moving stocks and other markets, including the Dow Jones Industrial Average, S&P 500 and Nasdaq Composite
Source: WSJ - 🏆 98. / 63 Read more »

These four Dow stocks take top prizes for dividend growthThere is a correlation between a high rate of dividend growth and excellent returns among stocks in the Dow Jones Industrial Average.
Source: MarketWatch - 🏆 3. / 97 Read more »