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.

Stay ahead of the market!

Subscribe now to our mailing list and receive the latest market news and insights delivered directly to your inbox.

forex

Forex Trading with FXOpen

Forex Trading with FXOpen

Experience ECN technology for deep liquidity and light-speed trade execution

  • Access over 50 markets
  • Trade with spreads from 0.0 pips
  • Take advantage of commissions from $1.50/lot
Learn more

Latest articles

USD/CAD Consolidates
Forex Analysis

USD/CAD Consolidates

In the second half of April, the USD/CAD chart has shown a decline in volatility following significant spikes observed since February.

The Canadian dollar has stabilised against the US dollar within the 1.390–1.380 range over the

Why Coinbase (COIN) Shares Are Rising
Shares

Why Coinbase (COIN) Shares Are Rising

As the Coinbase (COIN) stock chart shows, trading closed yesterday above the $200 mark — for the first time since March.

Since the beginning of April, COIN's share price has risen by nearly 20%, while the S&P 500 index

Forex Analysis

USD/CHF Rebounds from Multi-Year Low

As the charts show, the USD/CHF exchange rate fell below 0.810 US dollars per franc earlier this week. The pair had not traded this low since the 2008 financial crisis. Demand for the Swiss franc as a safe-haven

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. 60% 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.