Dow Jones Today: Will Stocks Fall Further as Oil Declines Below $100

On Tuesday, April 14, the Dow Jones Industrial Average surged 317.74 points or 0.66% to close at 48,535.99. Global markets surged today amid potential peace talks between the US and Iran in the next few days. As a result of optimism, Brent crude prices fell below $95. 

Dow Forecast 

Dow Jones gains ground amid a broad rally in the equity markets. Amazon and NVIDIA were the biggest gainers in the Dow Jones index. Chevron was the only notable loser in the index, which declined 2.78% as traders reacted to the major sell-off in oil markets. 

From a technical point of view, the Dow Jones had formed a classic head‑and‑shoulders pattern from the 50,512 high, with the neckline sitting around 48,500-48,400. The decisive daily close below that neckline in early March triggered a sharp sell‑off. 

The index reached our projected target of 46,500 in mid‑March before extending lower to the late‑March low of 45,063. 

Dow Jones climbed above the resistance at 48,200-48,300 and is trying to sustain above the 48,500 level. If the Dow Jones breaks above 48,500, it will move towards the next resistance at 49,000-49,100. 

RSI has recently moved into overbought territory, currently at 69.90, but there is enough room to gain additional upside momentum in case the right catalysts emerge.

Oil Prices Decline

Crude oil prices extended their losses for the second consecutive session on Wednesday, as hopes of renewed diplomatic engagement between Washington and Tehran eased concerns over supply disruptions. 

Internationally, Brent crude futures fell ‌0.55% to $94.27 a barrel after a 4.6% decline in the previous session. US West Texas ‌Intermediate crude was down $1.04 or 1.1% to $90.24 after dropping 7.9% ‌the ⁠session before. The pullback follows a sharp rally earlier this week, when prices briefly surged past $100 per barrel amid fears of escalating tensions in the Middle East. 

Also Read: NVIDIA’s $22 Trillion Outlook Faces Supply Strain as Rival AI Chips Gain Attention

Top 5 Gainers on Dow Jones

Asian Markets Rise 

Asia-Pacific markets opened higher on Wednesday, South Korea’s Kospi advanced 2.95% while the small-cap Kosdaq gained 1.98%. Japan’s Nikkei 225 was 0.67% higher, while the Topix rose 0.49%. Australia’s S&P/ASX 200 added 0.10%. 

Mainland China’s CSI 300 index was up 0.41%, while Hong Kong’s Hang Seng index was 0.95% higher.

Also Read: Stock Market Update: Nifty 50, Sensex will Likely Open Higher Amid Talks of Renewed Peace Talks Between US-Iran