The Dow Jones Industrial Average (DJIA) continued trading near the upper end of its recent range on Tuesday, with overall market momentum remaining subdued as investors await pivotal trade developments and crucial inflation data.
Delegates from the Trump administration are nearing the conclusion of trade talks with Chinese officials in London. Negotiations appear to be in their final stages, with unresolved issues expected to be addressed after Tuesday’s market close. However, no major breakthroughs or concessions have been announced, fueling investor unease over the persistent lack of progress and continued trade tensions.
The next major catalyst for markets will arrive Wednesday with the release of Consumer Price Index (CPI) data, which will include the first measurable impact of the Trump administration’s recently imposed “reciprocal” tariffs. Economists are forecasting a rise in both headline and core inflation figures. Annualized headline CPI for May is expected to accelerate to 2.5% from 2.3%, while core CPI is projected to increase slightly to 2.9% from 2.8%.
Additional inflation data will follow Thursday with the Producer Price Index (PPI), anticipated to remain steady at 3.1% year-over-year. On Friday, attention will shift to consumer sentiment, with the University of Michigan’s latest index expected to show an improvement in confidence.
Dow Jones Outlook:
The DJIA is edging closer to a near-term resistance level at 43,000, marking the upper boundary of its recent consolidation pattern. The index remains supported above its 200-day Exponential Moving Average (EMA) around 41,650, indicating underlying strength. However, technical indicators suggest that bullish momentum may be due for a pause, with oscillators signaling overbought conditions. Investors will likely remain cautious until key economic data and trade negotiations provide clearer direction.
