Dow Jones

Dow Jones rebounded sharply from the early losses as softer-than-expected inflation data reduced expectations of a near-term Federal Reserve interest rate hike. The technical outlook on the daily chart continues to indicate a bullish trend, supported by a robust rebound.

Key Indicators

• Dow formed a short-term base near 52k after correction. Bulls are defending the 52,000 support to prevent increased bearish pressure and potentially stronger sell-offs.

Fundamental Context

Wall Street closed higher across all three major indexes, as markets reacted positively to the soft CPI data. Today, traders and investors should closely monitor the release of the latest US PPI data, along with comments from several Fed officials, for clues about the size of futures rate cuts by the US Federal Reserve.