Despite a series of modest rises over the past three consecutive trading sessions, the Dow has again dropped further from the 20,000 mark, despite a continued weakening of the U.S. dollar against many major currencies.
Although gains had been made in the trading sessions of Monday, Tuesday and Wednesday of this week, the reversal of the losses incurred in the concluding three trading sessions of 2016 have been undone, despite a weak dollar relative to many major currencies.
The Dow had finally managed to climb out from the dip it fell into in the three concluding trading sessions of 2016, as traders cashed in profits. With anticipation of a weak dollar in the wake of the release of Fed minutes from the December meeting driving the index back almost to the high it experienced in 2016. However, in Tuesday’s trading session the Dow fell 0.38% to 19861.50 at 13:33 EST, erasing gains made in previous trading sessions.
Inauguration of President-Elect Donald Trump on January 20 is expected to further weaken the dollar, which may provide some motivation for a Dow increase – pushing it above the long-anticipated 20,000 mark. The programme of intensive stimulus and protection of U.S. manufacturing hinted at by the imminent President had pushed the Dow close to the mark, although it ran out of steam within 15 points of the barrier.