Dow Jones Slide Shows What Rate Hike Bets Mean for Stocks
The Dow Jones support breakdown shows rising bond yields and rate hike bets hitting U.S. stocks while tech giants prop up the Nasdaq.
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The Dow Jones support breakdown shows rising bond yields and rate hike bets hitting U.S. stocks while tech giants prop up the Nasdaq.
Fawad Razaqzada, StoneX Media Market Analyst, explains why the weakness building beneath U.S. stocks is showing up first in the Dow Jones.
Bond markets have swung from pricing rate cuts to pricing further hikes, and U.S. mortgage rates sit at their highest since November 2023. Only 47% of S&P 500 stocks trade above their 200-day moving average, leaving a handful of tech and AI names to carry the index. The Dow Jones would need to reclaim its short-term bearish trend line and 21-day exponential moving average to repair the damage.
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