Stock market today: Dow Jones 30 (DJIA) edges higher to $46428, erasing Friday’s losses

[Redator]

Recently suffering a loss of 2.50% only six days ago, the Dow Jones 30 edges 0.22% in today’s session, erasing losses from Friday’s trading.

Trading around ~$46,428, the Dow Jones now looks for support to continue the recent rally, albeit currently lagging behind its US equity counterparts.

What’s next?

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Dow Jones 30 (green), S&P 500 (blue) & Nasdaq-100 (yellow) OANDA, TradingView, 16/10/2025

Dow Jones 30 (DJIA): Key takeaways 16/10/2025

• Suffering the worst loss since April on Friday, the blue-chip heavy Dow Jones is recovering more slowly than the Nasdaq-100 and S&P 500, as markets look to pare losses
• While banking earnings topped analyst estimates on Tuesday, forward guidance from JPMorgan & Chase had dampened expectations of growth in Q4, hurting banking stocks and weighing heavily on the price-weighted Dow Jones
• Responsible in no small part for Friday’s sell-off, a worsening US-China trade war looks set to continue, with Trump accusing China of being “economically hostile”

Read more on today’s session: Markets Today: UK GDP Up 0.1% in August, Gold & Oil Advance, FTSE Breaks Below 100-Day MA. Fed Speakers In Focus

Dow pares losses from Friday, edging higher to $46,428

With US equity trading this week being relatively tame, let’s round up a few macroeconomic themes at play:

Trump accuses China of being “economically hostile” over soybean spat: Safe to say I didn’t expect to be writing about soybeans this week, but here we are. With Friday’s sell-off still fresh in the memory, with trade tensions inspiring a risk-off move that seriously hurt US equities, Trump has again renewed a moral offensive on China, with soybean exports his next point of contention.

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@realDonaldTrump, Truth Social, 14/10/2025

While most are unfamiliar with the logistics of US legume exports, Trump’s comments are significant in two ways:

1. They further Trump’s narrative of prioritising domestic industry
2. They signify a breakdown in relative cordiality between the two biggest world economies

As for Dow pricing, with Friday being a case in point, a worsening US-China trade war is likely to hurt US equity pricing, with markets becoming more risk-averse.

This holds especially true for US tech stocks, such as NVIDIA, a key Dow constituent. Highly sensitive to US-China trade tension, the semiconductor manufacturer lags behind the Dow in terms of recovery since Friday’s sell-off, trading around $182.65 per share.

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Dow Jones 30 (green) & NVIDIA (pink) OANDA/Nasdaq, TradingView, 16/10/2025

Forward guidance from US banking sector to disappoint: Despite the best efforts of stellar Q3, topping almost all analyst predictions, markets were quick to sell US banking stocks following comments from JPMorgan & Chase CEO Jamie Dimon.

"My antenna goes up when things like that happen. I probably shouldn’t say this but when you see one cockroach, there’s probably more. And so everyone should be forewarned at this point "

JPMorgan Chase CEO Jamie Dimon, speaking during Q3 earnings call

Dimon, known for his rescue of failed investment bank Bear Stearns, warned of ‘cockroaches’ in the private credit sector, following the collapse of subprime automobile lender Tricolor and car part supplier First Brands.

While admittedly somewhat niche to broader Dow Jones commentary, the comments cast further shadows on US private credit, of which banks like JPMorgan are exposed.

In the case of Goldman Sachs, at #1 in terms of DJIA weighting, recent performance would go some way in explaining the somewhat hampered recovery of the Dow Jones compared to other US equity indexes.

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Dow Jones 30 (green) & Nasdaq BANK index (pink), OANDA, TradingView, 16/10/2025

As a personal aside: perhaps the first and last time I’ll use the word ‘cockroaches’ as part of financial market commentary.

Dow Jones 30 (DJIA): Technical Analysis 16/10/2025

To conclude, let’s break down some technicals:

Dow Jones 30 (DJIA): Daily (D1) chart analysis:

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Dow Jones 30 (US30USD), D1, OANDA, TradingView, 16/10/2025

Let me start by apologising for a cluttered chart - it just so happens that many key levels are close to current price action.

With moral obligations out of the way, let me draw your attention to the 14-period RSI, which has been erring on the side of overbought lately.

If nothing else, Friday’s sell-off will be eyed by markets as a potential entry point, assuming price finds support at the 20-period SMA.

Should price meet resistance and fall, we can also expect some technical buying at the 50 SMA, although, as things stand, a fall to this level is unlikely.

Price targets and support/resistance levels:

• Price target #1: Previous high: $46,434
• Price target #2: Previous high: $46,843
• Support #1: 20-Period SMA: $46,346

Read about the precious metals in today’s session: Silver (XAG/USD) Technical Outlook: Silver Price Consolidates Ahead of Next Move. Where to Next?

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