Listen to the latest market mood for the Dow Jones.
US Stocks are supported by a number of factors right now. The Federal Reserve is keeping interest rates low, QE levels high, and it shrinks from hawkish comments. Interest rates are expected to remain as they are until 2023. The Fed has also been clear that it is too early to talk about tapering and the recent run of economic data has shown strength in the US economy.
President Biden wants to vaccinate everyone who wants a vaccine by July this year, so the US economic recovery should be supported by the vaccine rollout speed.
In this environment, the majority view will be to ‘buy the dip’ in US stocks. Therefore, expect Dow Jones buyers from pullbacks lower to 30800.
- The main risk to this trade is from any risk-off tones on COVID-19 news.
- Any bad news about the speed of the vaccine rollout will also weigh on stocks.