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Dow Jones Industrial Average continues cautious climb, bolstered by PMI beat
Tuesday, 6 May 2025 00:24 WIB | MARKET UPDATE |DOW JONES

The Dow Jones Industrial Average (DJIA) rose another 100 points on Monday, extending the ongoing equity recovery even as investor sentiment continues to churn in the face of constantly changing trade policies from the US administration. The Federal Reserve (Fed) is poised to deliver another rate call this week, and Fed policymakers are broadly expected to maintain their wait-and-see approach. Rate markets have fully priced in another hold on rates this Wednesday.

Trade policy inconsistency remains the single large cloud hanging over equity markets, keeping bullish momentum tepid overall. US Treasury Secretary Scott Bessent noted on Monday that the Trump administration is expecting some form of trade deal from up to 17 trading partners, a far cry from United States (US) President Donald Trump's previous claims several weeks ago of over 200 countries scrambling to offer trade deals. President Trump's own claims may have been too lofty a goal to set, as only 195 countries are formally recognized to exist in the world.

US ISM Services Purchasing Managers Index (PMI) figures came in much stronger than expected in April, rising to 51.6 MoM, entirely flouting the forecast dip to 50.6 from the previous 50.8. The firm upside beat helped to bolster key industrial sector stocks. However, upside gains were firmly offset by further declines in the energy and general consumer goods sectors.

Source: Fxstreet

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