Market Analysis

Dow Jones Gains, Nasdaq 100 Outperforms Amid Dovish Fedspeak. ASX 200 May Rise

Dow Jones, Nasdaq 100, Fed, ASX 200, Nikkei 225, Kospi – Asia Pacific Index Overview

  • Dow Jones profits, Nasdaq 100 ahead of dovish Fedspeak
  • Equities in Asia-Pacific may rise, especially those that are technology-leaning
  • Australia’s ASX 200 the goal could be a short-term review of the 2020 peaks

Monday’s Wall Street Trading Session Summary

Shares of Wall Street rose, with the tech-rich Nasdaq 100 leader up 1.72% on Monday. The S&P 500 The Dow Jones industry average rose 0.99% and 0.54%, respectively. This probably reflected the demand for growth-oriented equities relative to value equities. This followed the disappearance of the contributions to the Fed rate hike in 2022, as Treasury profitability fell in a relatively quiet session that was key without the risk of economic data.

The central dovist comments of the central bank seemed to play a role here. Raphael Bostic, President of the Atlanta Federation, said he did not see inflation going on at the moment. So James Bullard, president of the Federation of St. Louis, said they were not “quite there”, ready to talk about a policy of narrowing. The central bank has downplayed the report on the higher consumer price index last month and the markets have taken note of it.

Dow Jones Technical Analysis

From a technical standpoint, Dow Jones futures monitor resistance in the key zone between 34352 and 34427 in the 4-hour chart below. Breaking higher could open the door from October onwards to increasing support for widening the rebound. This would probably draw attention to the all-time high of 35,000. Having said that, the negative divergence in the RSI indicates that the upswing is fading. This may precede a lower turn.

Dow Jones Futures – 4-Hour Chart

The Dow Jones Gains, Nasdaq 100 outperforms Dovish Fedspeak.  The ASX 200 may rise

The chart is created in TradingView

Tuesday Asia-Pacific Trade Session

With this in mind, the positive mood on Wall Street could be conveyed at Tuesday’s Asia-Pacific trade session. This is especially the case given the relatively quiet day in terms of data. It can place the Australian ASX 200 and the Japanese own Nikkei 225 on the offensive. Strong overnight growth in technical equities could boost South Korea’s KOSPI index and Taiwan’s TAIEX. The latter is more focused on the semiconductor industry.

ASX 200 technical analysis

On a four-hour schedule, the ASX 200 closed at its highest since May 11thth, pushing over May 18thth tip. This puts the Fibonacci extension at the center of focus at 7101. There was also a bullish crossover between 20-50 periodic simple moving averages (SMAs). All in all, this may indicate a rosy picture in the near future. It is also in the middle of what seemed to be the wrong breakthrough with growing support from 2020 onwards. The added value would reveal the highest in 2020.

ASX 200 – 4-hour schedule

The Dow Jones Gains, Nasdaq 100 outperforms Dovish Fedspeak.  The ASX 200 may rise

The chart is created in TradingView

– Written by Daniel Dubrovsky Strategist to DailyFX.com

Use the or comments section below to contact Daniel @ddrovrovskyFX Twitter

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