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June 04, 2025

Stocks

Dow Dips from Heights: Market Pauses Near Record as Earnings, Fed Minutes Loom

Summary

The Dow Jones retreated from near-record levels, snapping a multi-session winning streak as traders turned cautious. With the index just shy of its all-time high, profit-taking and macro uncertainty took the front seat.

Key Drivers of the Pullback

  • Earnings Anticipation: Investors awaited quarterly results from major tech names, especially Nvidia, which could set the tone for broader market sentiment.
  • Fed Watch: The Federal Reserve's May meeting minutes hinted at ongoing inflation concerns, with no clear signal on imminent rate cuts—this tempered bullish sentiment in equities.
  • Trade Policy Jitters: Developments around U.S. trade tariffs raised concerns about potential cost pressures on multinational corporations, pressuring sentiment in industrial and tech-heavy segments.

Short-Term Outlook

The Dow's dip reflects a pause for breath amid an otherwise strong uptrend. While momentum remains intact, earnings volatility, central bank clarity, and geopolitical developments will shape the next leg. Traders should:

  • Watch for Nvidia earnings and PCE inflation data later this week.
  • Track bond yields for rate expectations.
  • Keep an eye on international trade headlines for potential spillover effects.

US30 – H4 Timeframe

US30H4_(3).png

The 4-hour timeframe chart of US30 shows the price entering a critical supply zone, with its bullish probability further marginalized by the confluence from the two resistance trendlines. The initial target is the 100-period moving average since the highlighted point of interest falls within the 86% Fibonacci retracement level.

Analyst's Expectations: 

Direction: Bearish

Target-41805.10

Invalidation- 42870

CONCLUSION

You can access more trade ideas and prompt market updates on the telegram channel.

Trading foreign currencies on margin involves significant risks and may not be suitable for everyone, as high leverage can increase both potential gains and losses. Before entering the foreign exchange market, it is essential to evaluate your investment goals, personal experience, and risk tolerance.

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Adetola-Freeman Ogunkunle

Author: Adetola-Freeman Ogunkunle

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