Dow Jones suffers huge losses 5/3/2025

The Dow Jones Industrial Average suffered significant losses on Wall Street during the previous trading session, surpassing the target level of 42,930 and closing at 42,422.

Technical Outlook

• Support Zone:
  • Today, the index is finding support around 42,420, potentially forming a bottom near this level.
  • The Stochastic indicator is currently positioned in oversold territory, adding weight to this support.
• Potential Scenarios:
  • Limited Upside:
    • A modest recovery could lead to a retest of 43,430.
  • Continuation of Downtrend:
    • If the upward movement fails to gain traction against the prevailing downward trend, the next key target may be around 42,490.
    • A break below this level could accelerate the downward momentum, potentially driving the index toward 41,990.

Risk Warning

Ongoing trade tensions and other market uncertainties contribute to high risk, and all scenarios remain possible.

High-impact US economic data, specifically the “ADP Payroll” is scheduled for release today. This could result in significant volatility in prices and news.

Disclaimer: Trading in CFDs carries inherent risks, and all scenarios are possible. This analysis is not investment advice but rather an interpretation of the current technical landscape for the Dow Jones Industrial Average.

S1: 42495	R1: 43430
S2: 41990	R2: 43860
S3: 41560	R3: 44365