Dow Jones Industrial Average tests the high side as investors try to respark the tech run

The Dow Jones clambered back over the 43,000 level on Monday.
Market sentiment rose after a report that the Trump team might trim tariff plans.
Final US S&P Global PMIs missed Wall Street forecasts in December but still rose.

Joshua Gibson FXStreet

The Dow Jones Industrial Average (DJIA) extended into the bullish side to kick off the new trading week, clipping back over the 43,000 handle and lurching 300 points higher after a Washington Post article suggested that incoming President Donald Trump and his team may be considering a more nuanced approach to widespread tariffs the President-elect has threatened to impose shortly after taking office.

Former and returning President Donald Trump was quick to voice resistance to the article, claiming that the Post story was wrong and that the incoming President still intends to impose a sweeping tariff package against most of the US’ closest allies and trading partners. Investors shrugged off the back-and-forth, clinging to the hopes that President Trump will be dissuaded from imposing what amounts to a flat 20% import tax on US consumers.

Final US S&P Global Purchasing Managers Index (PMI) figures somewhat missed the mark on Monday, with the Composite and Services PMIs for December both climbing from one month to the next, albeit less than analysts expected. Both indicators saw a slight downward revision from their preliminary prints, but still gained ground as the US economy churns on.

Dow Jones news

Markets are looking to reignite the tech rally juggernaut in 2025, pushing chipmakers higher and dragging most of the market higher alongside them. Nvidia (NVDA) soared over 4.5%, climbing above $151 per share. A distant second place goes to Goldman Sachs (GS) which rose around 2% to $590 per share.

Dow Jones price forecast

After a tepid start to the new trading year, the bulls are back on the block and the Dow Jones is getting pushed back above the 43,000 handle as bidders try to regain lost ground following the DJIA’s most recent downside plunge. The Dow Jones has rebounded 2.3% from a near-term swing low into the 42,000 region, but bidders still need to drag price action back above the 50-day Exponential Moving Average (EMA) at 43,225 before the bull market can be declared renewed.

Dow Jones daily chart

Economic Indicator

S&P Global Composite PMI

The S&P Global Composite Purchasing Managers Index (PMI), released on a monthly basis, is a leading indicator gauging US private-business activity in the manufacturing and services sector. The data is derived from surveys to senior executives. Each response is weighted according to the size of the company and its contribution to total manufacturing or services output accounted for by the sub-sector to which that company belongs. Survey responses reflect the change, if any, in the current month compared to the previous month and can anticipate changing trends in official data series such as Gross Domestic Product (GDP), industrial production, employment and inflation. The index varies between 0 and 100, with levels of 50.0 signaling no change over the previous month. A reading above 50 indicates that the private economy is generally expanding, a bullish sign for the US Dollar (USD). Meanwhile, a reading below 50 signals that activity is generally declining, which is seen as bearish for USD.

EUR/USD looks to stabilize near 1.1600 as focus shifts to US data

EUR/USD is looking to stabilize near 1.1600 in the European session on Wednesday as traders breathe a sigh of relief before the top-tier US ADP jobs and ISM Services PMI data. A pause in the US Dollar uptrend helps the pair's recovery, but surging energy prices due to the Iran war will likely remain a drag.

GBP/USD stays weak near 1.3350 as USD preserves gains

GBP/USD stays in the red below 1.3350 in the European session on Wednesday. Escalating conflict in the Middle East keeps the "flight to safety" theme intact, supporting the US Dollar against the Pound Sterling. Traders will take more cues from the US ADP Employment and ISM Services Purchasing Managers Index reports, which are due later on Wednesday.

Gold retains positive bias amid sustained safe-haven flows and modest USD pullback

Gold maintains its offered tone through the first half of the European session, though it lacks follow-through and remains below the $5,200 mark. Investors remain concerned about a prolonged conflict in the Middle East and its impact on the global economy amid an already uncertain environment.

Bitcoin, Ethereum and Ripple struggle for direction as consolidation persists

Bitcoin, Ethereum and Ripple prices trade with a cautious tone at the time of writing on Wednesday as upside momentum continues to fade across the broader crypto market. BTC remains within a parallel channel, ETH struggles below key resistance, while XRP remains fragile within a descending channel. These top three cryptocurrencies by market capitalization continue to struggle to establish a directional bias amid the consolidation phase.

Asian stocks fall as South Korea’s KOSPI slumps over 10%

Asian equities drop on Middle East tensions; the MSCI Asia Pacific Index falls up to 4%. South Korea’s KOSPI fell 10.71% near 5,170, with the Korean Won weakened past 1,500 per dollar.

Solana Price Forecast: SOL consolidation near resistance as ETF inflows offer mild support

Solana price is facing slight rejection as it approaches the upper boundary of the consolidation range at around $88 on Wednesday. Institutional demand is strengthening as spot Exchange Traded Funds recorded two consecutive inflows so far this week.