Djia Consolidates Ahead Of Fomc

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Djia Consolidates Ahead Of Fomc

Dow Jones Industrial Average Consolidates Ahead Of Fomc

Dow Jones Industrial Average (DJIA) initially made a new high for the 2nd day consecutively. However, the index gave up some of its gains again ahead of the highly anticipated Federal Reserve meeting.

In short, DJIA made a new high only to reverse and get back into the trading range of the previous day. The US retail sales for August also showed a 0.1% jump, which was higher than the forecast of -0.2%.

Fomc Decision Awaited By Markets

The retail sales data have given hope that the US economy is still far away from the recession. But, it will not be enough to stop the Federal Reserve from lowering the policy rate.

At this stage, there's no valid reason for the US Federal Reserve to keep the rates at such elevated levels. After all, the inflation has gone down while the labor market is now also showing signs of weakness. To say, that the current circumstances are ideal for starting the rate cutting cycle wouldn't be wrong.

For the most part, the Dow Jones Industrial Average (DJIA) remains mixed as most of the top stocks are already in red. But that could change soon as we are now very close to the first rate cut of this year.

Walmart (WMT) is down by 2% for the day after touching the $80.96 (high) on Monday. Right now, WMT is seeing around $79, which means the retail giant has given back some of its gains.

Tuesday remains mostly fixed for the Dow Jones Industrial Average (DJIA). Earlier, the index crossed the 41750 level only to move back into the familiar trading range. In the process, the index has also ended its 4-day winning streak.

Given the circumstances, there's a good chance that the Dow Jones Industrial Average (DJIA) will likely move lower to 40493, where the 50 EMA is located.

On the other hand, it is difficult to find resistance on the top as the Dow Jones Industrial Average (DJIA) is trading at new heights.

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