The US 30 stock index reached another all-time high and will likely be poised for further growth, supported by investor confidence in anticipated US Federal Reserve key rate cuts. The US 30 forecast for next week is moderately positive.
US 30 forecast: key trading points
- Recent data: initial jobless claims reached 241,000 over the past week
- Economic indicators: the indicator shows the number of people who applied for unemployment benefits for the first time
- Market impact: a stronger labour market may slow the pace of Federal Reserve rate cuts
- Resistance: 43,200.0, Support: 42,735.0
- US 30 price forecast: 43,760.0
Fundamental analysis
Initial jobless claims indicate the number of people who applied for unemployment benefits for the first time. The decline from the previous 258,000 may suggest a potential improvement in the labour market as fewer people claim benefits.
Source: https://tradingeconomics.com/united-states/jobless-claims
The decrease in initial jobless claims indicates the labour market’s resilience, which may support investor confidence. This drives consumption growth, which is beneficial for companies from sectors focused on domestic demand (retail and services). On the other hand, with such high interest rates, the easing of US Fed monetary policy may be more critical to the market.
Higher retail sales (+0.4%) imply stable consumption, which is a positive factor for the economy in general. This may positively impact the stock market, especially in the consumer goods and services sectors. The US 30 index forecast is moderately optimistic.
US 30 technical analysis
The US 30 stock index is in an uptrend and has the potential for further growth to new all-time highs. The price broke above the 43,200.0 resistance, and growth will continue if it consolidates above this level. According to the US 30 technical analysis, a correction is possible if this forecast does not materialise.
The following scenarios are considered for the US 30 price forecast:
- Pessimistic US 30 forecast: a breakout below the 42,735.0 support level could send the index down to 41,855.0
- Optimistic US 30 forecast: a breakout above the 43,200.0 resistance level could drive the price to 43,760.0
Summary
Initial jobless claims reached 241,000 over the past week. The decline from the previous 258,000 increases the likelihood of an improvement in the labour market as fewer people claim benefits. Nevertheless, with such high interest rates, the easing of US Fed monetary policy may be more critical to the market.
Source: Roboforex
