(MENAFN – DailyFX) Dow Jones Fundamental Forecast: Bullish
Dow Jones, S & P 500, FTSE 100 and DAX 30 Fundamental Forecast: The Dow Jones and S & P 500 will look to Wednesday’s Fed rate decision to influence price action Similarly, the FTSE 100 will await a rate decision and commentary from the Bank of England The DAX 30 will look to equity counterparts in the US and Europe to guide sentiment while it hopes to avoid US auto tariffs The Dow Jones faced a unique headwind this week when it’s largest component, Boeing, sank on news that a 737 Max 8 crash could be tied to software problems in the plane. Given Boeing’s considerable weight in the index, the Industrial Average lagged the other major US equity indices. In the week ahead, news out of Boeing will continue to influence the Average’s overall price.
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If the issues are quickly resolved, the Dow could outpace its S & P 500 counterpart on renewed strength in Boeing’s share price as it looks to recoup recent losses. A rate decision from the Federal Reserve on Wednesday will also impact the index.
Dow Jones Price Chart: 4-Hour Time Frame (September 2018 to March 2019) (Chart 1) How to day-trade the Dow Jones
S & P 500 Fundamental Forecast: Neutral
Similarly, the S & P 500 will look attentively to Wednesday’s Fed decision. While no change in the interest rate range is expected, tone or ‘Fed speak will remain critical. Any indication that the Fed may walk-back its recent dovish tone could prove bearish for US equity indices, particularly for the S & P 500 which has greater exposure to growth stocks than the Dow Jones.
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