Dow Jones Industrial Average retests its floor as consumer confidence sinks
The worst US consumer confidence reading since 2014 should have been enough to break the Dow Jones Industrial Average's September floor near 51,100, and the floor held for a third time.
The Dow Jones Industrial Average has reached a critical test of its September support level near 51,100, despite a sharp decline in consumer confidence to its lowest since 2014. The Conference Board's index dropped to 81.9, below expectations near 89, as consumers expressed negative views on business conditions and the job market.
Job openings remained light at 7.08 million in August. Meanwhile, Treasury yields hit new highs, with the 10-year near 5.26%, influencing mortgage, car loan, and company debt rates. The Fed raised interest rates on September 16 for the first time since 2023, with futures pointing to another increase in October. The Dow has lost about 3.5% in September and faces the possibility of a monthly loss, ending a five-month winning streak.
The S&P 500 has also dropped 0.2% over the same period. The Dow-Jones Industrial Average, comprising the 30 most actively traded stocks in the US, is price-weighted and founded by Charles Dow. Its performance is influenced by corporate earnings, macroeconomic data, and interest rates. Traders can engage with the Dow through ETFs, futures contracts, options, or mutual funds.
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