Market Analysis: Dow Jones Hits May Lows

FXOpen

US30, or the Dow Jones index, which is calculated based on the value of shares of 30 companies traded on Wall Street, fell below 32,800.

This happened against the backdrop of growing concerns about raising the US national debt ceiling. Fitch has even placed the long-term AAA US rating on review. According to JPMorgan analysts, despite the fact that the most expected scenario is the increase in the debt ceiling, the probability of a default at the moment is 25% and is increasing every day.

US30 is faring noticeably weaker than the index of technology stocks, which are in demand in the context of the AI-related boom. For example, NVDA shares soared 25% to $380 after yesterday's report, and Nvidia sharply raised its revenue and profit forecasts due to the demand for AI chips (we wrote about NVDA's bullish outlook just a week ago).


The US30 chart shows that the index value has fallen into the lower zone of the channel it has been in since November 2022. If default anxiety builds, it is possible that the Dow Jones will continue to decline within the short-term channel (shown in red lines) towards the lows of the year.

To take advantage of trends in the world's stock markets, consider enlisting the services of a reliable broker like FXOpen.

Trade over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips. Open your FXOpen account now or learn more about trading forex with FXOpen.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Latest from Forex Analysis

Commodity Currencies Strengthen after the FOMC Minutes Publication EUR/USD Analysis: Euro Showing Signs of Strength Market Analysis: EUR/USD Starts Increase While USD/JPY Dips Dollar Holds Steady after Producer Price Data Release GBP/JPY: Price Corrects from 8.5 Year High

Latest articles

Forex Analysis

Commodity Currencies Strengthen after the FOMC Minutes Publication

The fundamental data of recent trading sessions contributed to a slight strengthening of commodity and European currencies. Thus, the AUD/USD pair, after forming a bullish engulfing combination, managed to confidently gain a foothold above 0.6500. The pound/US

Forex Analysis

EUR/USD Analysis: Euro Showing Signs of Strength

Today news was published about the values of PMI indices for European economies. Data from France was encouraging: → French Flash Manufacturing PMI: actual = 46.8, expected = 43.5, a month ago = 43.1; → French Flash Services PMI: actual = 48.0,

Shares

NVDA Share Price Soars 11% after Report

The signs of concern we wrote about yesterday have largely subsided. After three days of declines, the price of E-mini Nasdaq 100 futures bounced off the lower boundary of the channel (see yesterday's chart) and rose, led by NVDA stock.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 65.68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.