Dow Jones Nears Record Territory Ahead of Fed Decision

A cautious Friday session concluded with modest gains for the Dow Jones Industrial Average, as investors balanced optimism from key inflation data against pre-Federal Reserve meeting jitters. With the index closing less than one percent below its 52-week peak, the market's immediate focus is whether it can muster the momentum to breach the 48,000-point barrier and set a new all-time high before the central bank's policy announcement.

Market participants received a dose of confidence from the latest Personal Consumption Expenditures (PCE) price index, the Federal Reserve's preferred inflation gauge. The core PCE reading showed a 0.2% monthly increase, precisely matching analyst forecasts. This data solidified market expectations, with the probability of a 25-basis-point interest rate cut at the upcoming meeting now priced at nearly 87%. Trading volume remained subdued, staying below the 20-day average, reflecting a widespread reluctance to place aggressive bets ahead of the Federal Open Market Committee (FOMC) meeting.

Salesforce Leads Gains, Media Sector Stirs

Within the Dow, Salesforce emerged as the standout performer. The cloud software giant's stock surged 5.3%, becoming the index's largest point contributor following a robust quarterly report and an upbeat forecast for its cloud business. Support also came from Microsoft, which advanced 0.5%, and Amazon, helping to offset slight declines in Apple (-0.7%) and Nvidia.

Outside the blue-chip index, a blockbuster acquisition announcement sent ripples through the media sector. Netflix revealed plans to acquire Warner Bros. Discovery for $83 billion. While the news initially pressured Netflix shares, pushing them down almost 3%, it sparked significant movement and speculation across the broader media landscape.

Should investors sell immediately? Or is it worth buying Dow Jones?

Technical Outlook: Bulls Maintain Control

From a technical perspective, the Dow Jones remains in a robust position. The index closed at 47,954.99 points, firmly holding its upward trajectory.
* Resistance: The 48,000-point level acted as a short-term ceiling on Friday. A decisive break above this psychological barrier is seen as the gateway to a new record high.
* Support: On the downside, the area around 47,800 points, reinforced by the 20-day moving average, provides a solid foundation.

The Relative Strength Index (RSI) reading of 62.4 indicates healthy bullish momentum without signaling an overbought condition. The index's position, more than 8% above its 200-day moving average, further underscores the strength of the long-term uptrend.

All eyes now turn to the Federal Reserve. With a quarter-point rate cut largely anticipated, the accompanying commentary and economic projections from policymakers will likely be the primary driver of market direction in the days ahead. A successful breach of the 48,000-point resistance could see the record fall swiftly.