Dow Jones Extends Rebound; Focus Shifts to US Consumer Confidence Data

The Dow began the trading week positively and closed Monday with notable advances. This performance contrasted with declines elsewhere on Wall Street, where the S&P 500 dropped 0.28%, and the technology-heavy Nasdaq Composite fell 0.77%, pressured by semiconductor and artificial intelligence stocks. Dow Jones futures extended gains on Tuesday ahead of the release of a key U.S. consumer confidence report.

Sentiment improved as technology stocks rebounded in premarket trading and investors reduced expectations of a Federal Reserve rate increase in September. Markets nevertheless remained cautious ahead of US consumer confidence data, Nvidia’s quarterly results, key inflation figures and Fed Chair Kevin Warsh’s Jackson Hole speech.

Investors also monitored the possibility of Washington imposing secondary sanctions on countries doing business with Iran. Oil prices declined because these policies lacked swift enforcement and were considered less likely to disrupt global supply compared to the threat of renewed armed conflict.

US consumer confidence in focus

The Conference Board’s August Consumer Confidence Index is scheduled for release at 14:00 GMT. Economists forecast a slight decline to approximately 90.3 from July’s 90.8.

A significantly stronger reading could reinforce confidence in the resilience of U.S. consumer spending but might also raise expectations that interest rates will remain elevated. Conversely, a sharp drop could heighten concerns about economic growth and support the case for the Fed to maintain its current policy stance.

Investors will also be attentive to July new-home sales data and comments from Richmond Federal Reserve President Thomas Barkin.

Dow Jones technical outlook

The Dow’s near-term structure remains neutral to moderately positive following its rebound from last week’s lows.

The 54,000 area represents the first significant resistance zone. A sustained move above it could bring the August record area near 54,700 back into focus. Failure to clear 54,000, however, would leave the index vulnerable to renewed consolidation.

On the downside, the 53,000–52,700 region is the principal near-term support zone. A decisive daily close below that area would weaken the recovery and could expose the index to a deeper pullback. As long as this support holds, buyers retain an opportunity to extend the rebound, although upcoming economic data may determine whether the move develops into a broader advance.

Warning! This material is not intended as investment advice. Past performance data does not guarantee future returns. Investing in foreign currencies may affect your returns due to their fluctuations. Any transaction in securities may result in both profits and losses. The assumptions and expectations set forth in this material are only estimates that may not be accurate and may change depending on current economic conditions. These statements do not guarantee future returns.