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Dow Jones fails to hold gains after weaker ISM and Powell comments

The all-round weaker than forecast ISM index yesterday did help to boost the US stock markets after the opening. The Dow Jones rose from an opening level of 39,139, to above 39,300. However, the high at 39,305 then gave way to fresh session lows later on, after the Fed boss did slightly pare back his previously dovish comments regarding the interest rate outlook. It was really just one line from Powell that did that, as he seemed to imply that a rate cut would only come when the Fed was satisfied that inflation was more likely to reach the 2% target, at any rate perhaps later in the year. So, the Dow Jones and other US stock markets indexes gave back much of their earlier gains. In the case of the Dow, that was a fall to 39,017. However, it did manage to rebound in the final 30 minutes of trade and closed just 43 points lower, at 39,127. However, a rebound in the Nikkei 225 today has helped to lift the Dow Jones futures today and right now the index is priced to reopen above 39,200 later.

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