The Dow Jones index fell sharply this week as geopolitical risks rose ahead of major earnings results from major companies such as NVIDIA and Salesforce.
summary
- The Dow Jones Index has formed a surprising rising wedge on the daily chart.
- Market risks such as Iran and tariffs continue to rise.
- NVIDIA and Salesforce are scheduled to report earnings on Wednesday.
The blue-chip Dow Jones was trading at $48,805, down more than 3.3% from its all-time high. Other top indexes such as the S&P 500 and Nasdaq 100 also fell more than 1%.
Salesforce and NVIDIA announce financial results this week
The Dow Jones Industrial Average fell as market participants were prepared to take on greater risks. One key risk is the growing possibility that the United States will attack Iran as soon as this week.
The risk of an attack increased after President Donald Trump warned that he could launch a limited attack against Iran. Such an escalation could cause oil price increases and market volatility.
Market participants are also concerned about President Trump’s tariffs. New tariffs under that section took effect Tuesday as the administration works on longer-term tariffs.
The Dow Jones index also fell as Jamie Dimon warned of a global financial crisis similar to 2008. In a statement he said:
“Unfortunately, we saw this in 2005, 2006 and 2007, and it was pretty much the same situation. A rising tide lifted all boats and everyone was making a lot of money. We saw some people doing stupid things. They’re just doing stupid things to set up NII.”
Looking ahead, the next big catalyst for the Dow Jones Index will be this Wednesday’s earnings reports from Salesforce and NVIDIA.
NVIDIA, the largest constituent, is expected to report strong results and future outlook as demand for GPUs surges. Analysts’ average estimate was for fourth-quarter sales to rise to more than $66 billion.
Salesforce stock has fallen more than 50% from all-time highs and will be in the spotlight. Stocks fell as investors remained concerned about the potential for disruption from new AI tools from companies like Anthropic and OpenAI.
Dow Jones Index Technical Analysis
Dow Jones Index Chart |Source: TradingView
The Dow Jones index reached a record high of $50,560 earlier this year, according to daily charts. The price has now returned to $48,805 due to increased market risk.
If you look closely, you can see that the index has formed an ascending wedge pattern consisting of two rising and converging trend lines. The price has already broken below the downside, confirming the bearish outlook.
The index also formed an ascending wedge pattern as the Relative Strength Index and MACD indicator rose and fell.
Therefore, there is a risk that it could continue to fall to our primary target of $48,000.
