U.S. Equity Investors Eye CPI Data Amid Fed Rate Cut SpeculationU.S. Equity Investors to Focus on Inflation Data to Gauge Potential Fed Rate Cuts
This week, U.S. equity investors will closely monitor consumer and wholesale price inflation data to assess the likelihood and magnitude of potential interest rate cuts in September.
The Dow Jones is expected to experience heightened volatility, particularly in response to the CPI data and the evolving interest rate environment. The index may attempt to reach 40,670, followed by a potential drop to 40,470 or lower, likely occurring ahead of the CPI release. If the CPI comes in at 2.8% or lower, upward pressure on the price is anticipated. Stabilizing above 40,800 before a decline would signal the end of the bearish correction.
Key Levels:
Pivot Point: 40,670
Resistance Levels: 40800, 41030, 41340
Support Levels: 40470, 40320, 40000
Expected Trading Range: 40800 - 40320
Trend: Bearish as long as the price remains below 40670.