Dow 30 Index Extended Gains Amid Robust Labor Market
By: Eddy Peng Mar 12, 2018
U.S. equity market extended its gains on Friday, which has been lasting for a week, with the U.S. 30 rising 0.39 percent and settling at 25432.6. The rise was triggered by healthy economic condition as the U.S. economy enjoyed the biggest hiring spree since mid-2016 in February.
Non-farm payrolls rose 313,000 in February, overwhelming the 205,000 median estimate in a survey of economists, Labor Department figures showed Friday. Meanwhile the unemployment rate in February remained at 4.1 percent, the fifth straight month at that level.
However, the inflation pressures remained muted as wage gains that spurred financial markets last month haven’t been holding. The wage figures show a cooling from a pace that spurred financial turbulence last month on concern that the Federal Reserve could raise interest rates faster.
Technically the U.S. 30 index has been narrowing showed by the chart 1, restricted by highs and lows starting from late January. It’s currently standing right below a descending resistance line, where is the determining point to choose a direction. In the event of a failure of breakout, a retreat suggests a continuous movement in this triangle.
A high reading of stochastic oscillator suggests the U.S. 30 index is standing in an overbought area and still holding its rising momentum. A pullback below to 80 is the point where investors may ponder to start selloff.
Chart 1: US30 Daily
Thank you for inquiry ACY.
Your application has been received, and we will arrange an account manager within 24 hours to contact you! We wish you have pleasant trading experience!
