On Wednesday, the Dow Jones Industrial Average (DJIA) surged over 490 points, or around 1.3%, reaching the 39,800 level. The rally followed comments from Donald Trump, who stated he has no intention of removing Federal Reserve Chair Jerome Powell, and reports suggesting a possible reduction in tariffs on Chinese imports.
WSJ Report and Treasury’s Confirmation
According to the Wall Street Journal, the U.S. government is considering lowering some tariffs on China in an effort to ease trade tensions. However, U.S. Treasury Secretary Scott Bessent emphasized that no unilateral offer has been made by Trump, and that any reduction in trade tensions must be mutual.
Market Reaction: Tech Stocks Surge, Gold Slumps
Improved trade sentiment fueled gains in major tech stocks.
- Apple (AAPL) rose by 3%
- Nvidia (NVDA) surged by 5%
Meanwhile, gold prices dropped sharply by over 2.75%, falling to $3,286, despite a decline in U.S. Treasury yields. The yield on the 10-year note fell by three basis points to 4.364%, yet investor appetite shifted away from safe-haven assets toward equities.
Dow Jones Technical Outlook: Resistance and Support Levels
Despite Wednesday’s gains, the downtrend in the DJIA remains intact. The index may look to close the gap created by Trump’s remarks and test the support level at 39,271, which corresponds to the April 22 peak.
If bullish momentum continues, the psychological resistance at 40,000 could be retested. However, if selling pressure increases and the index falls below 39,000, it could pave the way for a decline toward 38,500 and 38,000, with the 2025 low at 36,614 also in sight.
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