Dow’s record close

The Dow Jones closed at a record high last night despite tapering from the Federal Reserve.

The Dow Jones is currently trading 16,572, slightly below last night's close of 16,580. It is a bullish sign to see the US equity benchmark only a touch lower after its record close. Last night, the Federal Reserve kept interest rates at ultra-low and reduced the bond buying scheme by $10 billion to $45 billion; both figures were in line with expectations.

A trimming of the stimulus package is seen as a positive sign. It means the US economy is moving towards standing on its own two feet, even though the economy only grew by 0.1% in the first-quarter of 2014.

Tomorrow is the first Friday of the month, which means we can expect the non-farm payroll data. The consensus is for an increase of 215,000 new jobs to be created and for unemployment to fall to 6.6%. As Brenda Kelly stated, there is bullish sentiment regarding tomorrow’s announcement at 1.30pm (London time). If the figures fail to impress traders we could drop back to 16,400. Alternatively, if they beat expectations we could break through the 16,600 level.

Wall Street chart

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