Dow Jones Dips Amid Tech Sector Struggles

The Dow Jones Industrial Average (DJIA) fell by approximately 150 points on Thursday, reaching around 44,750. While overall US equities saw gains, the Dow was weighed down by losses in major tech stocks following disappointing earnings reports.

Several tech companies missed revenue and growth expectations, impacting investor sentiment. Economic data was mixed, with Initial Jobless Claims rising to 219,000, exceeding forecasts of 213,000.

The upcoming Nonfarm Payrolls (NFP) report is a key focus, with expectations of 170,000 new jobs in January, down from 256,000 in December. Revisions to previous employment data will also be scrutinized, as recent revisions have tended to be stronger than initially reported.

Within the Dow, performance was mixed. Nvidia (NVDA) led gainers, rising 2.2% to $127 per share, followed by Caterpillar (CAT), up 2% to $366. Conversely, Honeywell (HON) dropped 5.2% to $210 after issuing weaker-than-expected guidance, and Salesforce (CRM) declined 4.2% to $210 as the AI rally cooled.

Technically, the Dow appears to be ending a three-day winning streak, struggling to break through the 45,000 level. Despite Thursday’s decline, the Dow remains up 5.2% for the year. Support is seen near the 50-day EMA around 43,700, while the next target for buyers is the December record high just above 45,065.