The Dow Jones Industrial Average (DJIA) gained 125 points on Friday as equities try to shake off a decline in the University of Michigan’s Consumer Sentiment Index which showed US consumers are increasingly concerned about long-run inflation taking hold. Consumer 5-year Inflation Expectations ticked higher as the US economy begins to buckle under the weight of price growth runner even hotter and longer than previously expected.The UoM’s Consumer Sentiment Index for May declined sharply to 67.4 in May, falling well below the market forecast 76.0 and hitting its lowest figure in six months as consumer confidence deteriorates. 5-year Consumer Inflation Expectations also ticked higher to 3.1% in May compared to the previous 3.0%.Multiple Federal Reserve (Fed) officials hit the newswires on Friday as central planners try to talk down broad-market expectations for rate cuts in 2024 in the face of recent stubborn inflation figures.
Dow Jones news
The Dow Jones Industrial Average was the top-performing US equity index on Friday, gaining around a third of a percent in the last market session of the trading week. A third of the securities that comprise the Dow Jones still declined on the day, with the losses being led by Nike Inc. (NKE). Nike lost -2.62% on Friday, declining below $91.00 per share. On the upside, McDonald’s Corp. (MCD) pulled ahead of the rest of the pack, gaining 2.63%. McDonald’s gained seven points to close Friday trading at $275.00 per share.
Dow Jones technical outlook
Despite hobbled risk appetite in broader markets, the Dow Jones managed to set a new peak for the week, trading into 39,579.23 before settling back to the 39,500.00 region. Top side momentum is set to stall with the Dow Jones appearing overextended. The major equity index is trading well above the 200-day Exponential Moving Average (EMA) at 36,893.00.The Dow Jones ended a seventh consecutive day in the green, and the index is up around 2% for the week.
Dow Jones hourly chart
Dow Jones daily chart
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