Published: 1 December 2025,06:47
Daily Market Analysis New
*Equities rally continues – U.S. stocks extend gains as markets price in a Fed pivot toward policy easing.
*Rate-sensitive sectors lead – Technology, financials, and small-cap stocks benefit most from expectations of lower borrowing costs.
*Global risk-on sentiment – Strong rebounds in Asian markets and hopes for easier global policy support continued inflows into U.S. equities.
U.S. equities extended their rally as investors embraced growing conviction that the Federal Reserve is preparing to pivot toward policy easing, a view supported by the recent decline in Treasury yields. The prospect of lower borrowing costs has invigorated risk appetite across Wall Street, lifting technology, financials, and small-cap stocks that sectors traditionally most sensitive to shifts in interest rate expectations. Markets appear increasingly confident that the combination of easing inflation pressures and softer economic data will justify the Fed’s move toward rate cuts.
Sentiment has also been buoyed by the broader global risk-on tone, particularly the strong rebound across Asian markets. Expectations of improved liquidity conditions and hopes for a more accommodative policy environment globally have helped sustain equity inflows. Even as China’s latest PMI numbers signaled renewed weakness, investors continue to prioritize the near-term boost from falling U.S. yields and the possibility of an earlier-than-expected easing cycle.
While geopolitical tensions have eased marginally, underlying risks remain, and traders are keeping a cautious eye on potential disruptions. The tentative calm in the Middle East has supported sentiment, but uncertainty persists given inconsistent signals on the ground.The near-term outlook for Wall Street remains constructive but data-dependent. Upcoming inflation prints, labor market indicators, and Fed communications will determine whether the current rally can extend or whether markets are at risk of retracing should growth indicators firm unexpectedly. For now, the market is leaning into the narrative of cooling inflation, softer growth, and a policy pivot that all factors that favor continued equity strength.
Technical Analysis
The Dow Jones on the chart is maintaining a constructive bullish structure after rebounding strongly from its recent pullback and reclaiming the rising trendline that has guided the broader uptrend. Price has climbed back above the 78.6% Fibonacci retracement level near 46,420, signaling renewed bullish momentum and reducing the risk of a deeper correction. The index is now approaching overhead resistance around the 48,000 level, where previous rallies have stalled, making this a key zone to determine whether buyers can sustain the upward push.
RSI has surged back above the 60 level, reflecting improving bullish strength without yet reaching overbought conditions. Meanwhile, MACD has confirmed a bullish crossover with expanding positive histogram bars, reinforcing the view that momentum has shifted firmly back in favor of buyers. As long as price holds above the reclaimed trendline and the 47,000 region, the technical outlook remains positive, with potential for continuation toward the recent highs. A failure to break through the 48,000 barrier, however, could trigger another short-term pullback, but the broader structure continues to lean bullish.
Resistance level: 48,000.00, 49,090.00
Support level: 46,420.00, 44,325.00
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