Weekly Dow Jones Prediction: Eyes on CPI as Fed Policy Bets Drive DJIA Momentum

The Dow Jones ended the week slightly lower but remains within touching distance of fresh record highs, as softer U.S. employment data lifte

Dow Strength Tested as Investors Await Key Inflation Reading

Quick overview

  • The Dow Jones ended the week slightly lower but is close to reaching new record highs due to softer U.S. employment data.
  • Speculation about potential Federal Reserve rate cuts has increased, boosting optimism in the equity markets.
  • Other major indices, including the S&P 500 and Nasdaq Composite, also reached record levels, indicating broad market strength.
  • Key economic indicators, such as U.S. PPI and CPI inflation, will be closely watched this week for their impact on Fed policy.

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The Dow Jones ended the week slightly lower but remains within touching distance of fresh record highs, as softer U.S. employment data lifted expectations for Federal Reserve rate cuts and kept safe-haven assets in demand.

Dow Jones: Testing Record Territory

The DOW Jones Industrial Average opened last week on weaker footing but quickly regained ground, reaching its late-August peak of 45,637 points. With momentum carrying into this week, the index could break into uncharted territory and set a new all-time high as early as today.

DOW Chart Weekly – The Uptrend Continues

Fed Policy and Jobs Data in Focus

Friday’s softer-than-expected nonfarm payrolls report fueled speculation that the Federal Reserve may restart its rate-cut cycle at the upcoming meeting. Lower borrowing costs typically spur corporate investment, hiring, and innovation—factors that tend to support equity markets. The prospect of easing has added optimism to Wall Street’s near-term outlook.

Main U.S. Indexes: Daily Performance

Dow Jones Industrial Average (DJIA)

  • Finished at 45,621.29 points

S&P 500

  • Closed at 6,502.08 points

Nasdaq Composite

  • Ended at 21,707.69 points

Russell 2000

  • Settled at 2,379.61 points

Broad Market Strength Across Indices

It wasn’t just the Dow pushing higher—other major indices, including the S&P 500 and Nasdaq Composite, also touched record levels. Strong late-session rallies, resilience in cyclical stocks, and robust performance across both small and large caps suggest a broad-based and durable advance. Despite lingering macroeconomic uncertainties, the synchronized move points to improving investor sentiment and confidence in continued market growth.

Key Events to Watch This Week

U.S. PPI Inflation (Producer Prices)

  • Early gauge of inflation trends at the wholesale level.
  • Strong print → signals sticky inflation, weaker print → supports rate-cut bets.

U.S. CPI Inflation (Consumer Prices)

  • The most important release of the week.
  • Core inflation (shelter, services) in focus.
  • Cooler CPI → strengthens dovish Fed case; upside surprise → revives rate-hike fears.=

ECB Policy Meeting

  • Balancing act between slowing growth and persistent inflation.
  • Markets watching for hints: extended “higher for longer” vs. possible easing later in the year.

Dow Jones Live Chart

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Skerdian Meta
Lead Analyst
Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.

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