Dow Jones Industrial Index decreases by more than 700 points on Friday

• The Dow Jones index fell 1.6% to 434,500 on Friday.
• The indicators of American procurement managers came mixed, consumer morale decreased, and inflation expectations accelerated.
• United Health is said to be investigated by the US Department of Justice.

The DJIA Industrial Index (DJIA) fell by more than 700 points on Friday, as about one and a half percent decreased and the level of 43500 was first for the first time in more than a month. The American economic data is generally mixed into negative, but the main losses are increasing on the one -goal stock, which prompted the Dow Jones index to decrease significantly.

Possible stagnation fears return to the scene after a sharp shift in the American Purchase Manager Numbers (PMI). The PMI service component decreased to 49.7, its lowest level in exactly two years. With PMI services dropped without a 50.0 mark and entering the shrinkage area, the slow -height of the PMI manufacturing component helped to maintain balance, but not much. The PMI manufacturing index rose to 51.6 out of 51.2, reaching its highest level in seven months.

The consumer confidence index from the University of Michigan (UOM) also decreased in January, to reach its lowest level in 15 months at 64.7, as inflation concerns affected consumer morale. Inflation expectations for consumers for 12 months from UOM show that a sample of American consumers is now expecting inflation to be 4.3% over the next year, and expectations have accelerated for 5 years to 3.5%. With the high inflation expectations in consumers, it will be more difficult for the Federal Reserve (Fed) to provide interest rate cuts.

Dow Jones News

About half of the Dow Jones stock panel in the Green Zone on Friday, but the sharp declines in United Health (UNH) strikes the main Dow shows. United Health fell 9% during the day, reaching 458 dollars per share after it was revealed that the health care giant will be investigated by the US Department of Justice.

Dow Jones price expectations

With a strong declining batch, the Dow Jones index is now circulating in the dead area between the two Asian moving averages (EMA) for 50 days and 200 days at 43945 and 41970, respectively. The price movement has turned sharply to the decline, but there is still a big room for the sharp apostasy towards the upper side.

A strong ceiling has been priced near the 45,000 level, and buyers are likely to start returning to the chart with the continued prices to decrease around 43,000.

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