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    Dow Jones futures stabilize around 47,700 as major tech results approach amid risk-on sentiment

    by VT Markets
    /
    Oct 28, 2025

    Market Outlook

    The US and China have agreed on a framework for tariffs and major issues over the weekend. The Federal Reserve is expected to lower interest rates by 25 basis points this month. The Dow Jones Industrial Average is one of the oldest stock market indices, made up of 30 well-known companies. Unlike broader indices like the S&P 500, it is a price-weighted index. Several factors influence the Dow Jones, including company earnings reports and macroeconomic data. Interest rates and inflation also affect the index. Dow Theory examines trends in both the Dow Jones Industrial Average and the Dow Jones Transportation Average. You can trade the DJIA through ETFs, futures contracts, and mutual funds.

    Investment Strategies

    With the market reaching new highs, we are seeing a “buy the rumor” situation before the US-China trade meeting and the Fed decision. Remember the volatility from 2018-2020 during the trade disputes, where good news often led to swift but short-lived gains that reversed quickly if expectations weren’t met. Traders in derivatives should be cautious with overly optimistic strategies, as much of the good news is likely already reflected in prices. The expected rate cut from the Federal Reserve is a major support for the market, with a 97% chance of it happening. This cautious approach is supported by recent data showing a slight increase in the unemployment rate to 4.2% last month. This allows the Fed to push for economic growth, even as core inflation remains manageable at 2.5%. For traders, this makes buying call options appealing; however, the high likelihood of a rate cut means that premiums on near-term options are already quite high. Create your live VT Markets account and start trading now.

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