- Dow Jones gains 1.7% in a single day as rate cut hopes surge.
- Easing US Retail Sales data reignited market bets of a September rate cut.
- Dow Jones sets a new record high for a second day in a row.
The Dow Jones Industrial Average (DJIA) surged to a second record-setting day in a row, climbing over 680 points to chalk in a fresh all-time peak above50 as market sentiment buries the needle even further into hopes of a September rate cut from the Federal Reserve (Fed).
US Retail Sales slumped flat in June, printing at 0.0% in-line with forecasts and falling from the previous month’s revised 0.3% uptick, signaling that the US domestic economy is continuing to soften and prompting a broad-market rush into expectations of a September rate cut.
According to the CME’s FedWatch Tool, rate markets have a September rate trim fully priced in, with functionally 100% odds of at least a quarter-point rate cut when the Federal Open Market Committee (FOMC) meets on September. The FOMC’s upcoming rate call on July 31 is still broadly expected to be a hold as policymakers wait for a few more months of data to confirm inflation is easing to targets before pulling the trigger.
Dow Jones news
The Dow Jones soared over 680 points at its highest point on Tuesday as the major equity index makes its way toward 41,000.00 after crossing the 40,000.00 major handle for the first time back in May.
Unitedhealth Group Inc. (UNH) soared 6.11% to $546.86 per share on Tuesday after it reported better-than-expected earnings in Q2, helping to send the Dow Jones further into the stratosphere. Over two-thirds of the Dow Jones is in the green for the day, though tech stocks and AI-adjacents suffered small losses as the market pivots into rate cut exposure.
Merck & Co Inc. (MRK) fell -1.84% to $125.78 per share, followed closely by Microsoft Corp. (MSFT) and Intel Corp. (INTC), falling -0.99% and -0.84%, respectively.
Dow Jones technical outlook
Buyers ran a clinic on short interest on Tuesday, sending the Dow Jones into a record intraday high for the second day in a row. Technical resistance has evaporated on the top end as the major equity index is on pace for one of its best single-day performances of 2024.
The Dow Jones has climbed over 4% and counting over the past five trading days and the index is set to challenge the 41,000.00 technical level sooner rather than later.
Dow Jones five minute chart
Dow Jones daily chart
Economic Indicator
Retail Sales ex Autos (MoM)
The Retail Sales ex Autos data, released by the US Census Bureau on a monthly basis, measures the value in total receipts of retail and food stores in the United States excluding the key sector of motor vehicles and parts. A stratified random sampling method is used to select approximately 4,800 retail and food services firms whose sales are then weighted and benchmarked to represent the complete universe of over three million retail and food services firms across the country. The data is adjusted for seasonal variations as well as holiday and trading-day differences, but not for price changes. Retail sales data is widely followed as an indicator of consumer spending, which is a major driver of the US economy. Generally, a high reading is seen as bullish for the US Dollar (USD), while a low reading is seen as bearish.
Last release: Tue Jul 16, 2024 12:30
Frequency: Monthly
Actual: 0.4%
Consensus: 0.1%
Previous: -0.1%
Source: US Census Bureau
