The Dow Jones Industrial Average declined during its recent trading at the intraday levels, after erasing its early gains for the session, to close its last session with a decrease of -0.69%. The index lost -215.64 points, to settle at the end of trading at the level of 31,072.62, after rising in the day’s trading. Friday by 2.15%, but despite that it recorded losses during the past week by -0.17%.
AAPL shares led the index’s losses after a Bloomberg report that the tech giant intends to slow hiring and spending growth, as the company plans to cut hiring and spending in 2023 in certain divisions in order to preserve business for fear of a “potential economic downturn,” Bloomberg News reported Monday. Citing unknown sources. According to the report, the decision to exercise more caution amid economic uncertainty is not a company-wide strategy and will not affect all divisions. Apple shares closed down 2.1%, which is among the biggest losers on the Dow Jones Index.
In economic news, the probability of the Federal Reserve raising its target rate by 100 basis points was 31%, after hitting 80% last Wednesday, according to CME Group’s FedWatch tool.
The National Association of Home Builders’ monthly housing market index fell to a reading of 55 in July from 67 in June, well below expectations of a reading of 65 in a Bloomberg survey.
Technically, the index was subjected to negative pressure as a result of touching the resistance of its simple moving average for the previous 50 days, and this coincided with testing a correctional and descending branch line in the short term, as shown in the attached chart for a (daily) time period, for the index to surrender to this negative pressure, rebounding from Its early gains during the session and ends with losses that are the largest in percentage terms in more than two weeks.
Therefore, our expectations indicate more decline for the index during its upcoming trading, as long as the resistance level 31,885 remains intact, to target again the pivotal support level 29,653.30.