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Wall Street ends choppy day little changed

  • Trade concerns weigh on the market sentiment on Wednesday.
  • Falling crude oil price drag energy shares lower.
  • Tech gains allow the Nasdaq Composite to close in the positive territory.

Major equity indexes in the U.S. started the day slightly lower and struggled to make a decisive move in either direction throughout the day as investors assessed the latest trade headlines and their potential impact on the market.

On Wednesday, China announced new 25% tariffs on $16 billion worth of U.S. goods as a retaliatory measure and the trade-sensitive S&P 500 Industrials Index closed the day 0.4% lower. Rising trade concerns also forced crude oil prices to continue to fall amid the possibility of lower demand from China. The barrel of WTI touched its lowest level since June 22 below at $66.30 and the S&P 500 Energy Index fell 0.77%.

On the other hand, led by tech-giants Microsoft and Google's gains, the S&P 500 Information Technology Index added 0.3% to outperform other major sectors.

The Dow Jones Industrial Average lost 45.67 points, or 0.18%, to 25,583.24, the S&P 500 fell 0.87 points, or 0.03 percent, to 2,857.58 and the tech-heavy Nasdaq Composite gained 4.05 points, or 0.05%, to 7,887.71.

DJIA Technical Outlook (via FXStreet Analyst Valeria Bednarik)

"The Dow's decline seems corrective according to technical readings in the daily chart, as the index held at the upper end of Tuesday's range, while not far from its recent multi-month highs. In the same chart, the index is firmly above a bullish 20 DMA, while technical indicators lost directional strength, the Momentum well above its 100 level and the RSI close to overbought levels, all of which limits the downward potential."

"Shorter term, and according to the 4 hours chart, the index is barely holding above its 20 SMA, while the Momentum consolidates above its 100 level as the RSI heads lower at around 56, suggesting that the ongoing decline may see some follow-through during the next sessions, particularly on a break of the 25,500 threshold."

According to the analyst, supports could be seen at 25,553, 25,499, and 25,448 while resistances align at 25,640, 25,690, and 25,745.

Author

Eren Sengezer

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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