Dow Jones Industrial Average holds steady ahead of Fed rate call

• The Dow Jones stuck close to 41,000 during the midweek market session.
• Investors are trimming their exposure as they await Fed Powell's latest appearance.
• The Fed is broadly expected to keep rates on hold, but markets are looking for signs of a pivot.

The Dow Jones Industrial Average (DJIA) trimmed into the midrange during early Wednesday trading, treading water just above the 41,000 major handle as investors await the latest rate call from the Federal Reserve (Fed). The Fed is all but guaranteed to keep interest rates steady amid widespread market uncertainty at the hands of volatile policy strategies pouring out of the Trump administration, however rate-cut-hungry investors will be keeping a close eye on Fed Chair Jerome Powell's appearance later today as they look for signs that the Fed could getting closer to pivoting into a new rate-cutting cycle.

Fed rate cut hopes to clash with cut-shy Fed

Hopes for a near-term pivot into fresh rate cuts may prove to be poorly structured; according to FXStreet's own Fed Sentiment Index, the overwhelming majority of Fedspeakers have been tilting well away from language that would imply impending rate cuts. With a strong employment landscape and inflation continuing to ease back to target levels, the Fed has little reason to be overly concerned about dropping interest rates to support an economy that doesn't appear to need it. Adding in the fact that ham-handed trade policies and tactics from the Trump administration have significantly elevated market volatility, the Fed has little powder in reserve to deliver rate cuts that both the White House and market participants have been clamoring for.

News of the US and China getting ready to kick off trade talks this weekend in Switzerland initially supported equities early Wednesday, but US Treasury Secretary Scott Bessent was quick to temper market expectations. According to Treasury Secretary Bessent, trade talks in Switzerland will simply be a preliminary measure, and meaningful progress could take some time to materialize.

Dow Jones price forecast

The Dow Jones has pivoted into a middling pattern this week, churning chart paper near the 41,000 handle. Bids remain swamped in the 50-day Exponential Moving Average (EMA), and momentum in either direction has evaporated.

Dow Jones daily chart