News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
Wall Street
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
Real Time News
  • Stocks appear to be in a corrective phase but could get put to the test; levels and lines to watch in the days ahead. Get your weekly equities forecast from @PaulRobinsonFX here:
  • Currency exchange rates are impacted by several factors. Are different world leaders a contributing factor? Find out here:
  • Further your forex knowledge and gain insights from our expert analysts on AUD with our free guide, available today:
  • Many people are attracted to forex trading due to the amount of leverage that brokers provide. Leverage allows traders to gain more exposure in financial markets than what they are required to pay for. Learn about FX leverage here:
  • Trading Forex is not a shortcut to instant wealth, excessive leverage can magnify losses, and sentiment is a powerful indicator. Learn about these principles in depth here:
  • Risk management is one of the most important aspects of successful trading, but is often overlooked. What are some basic principles or risk management? Find out from @PaulRobinsonFX here:
  • The Japanese Yen is eyeing the upcoming Bank of Japan rate decision and CPI figures, but JPY crosses will likely remain dependent on broader market sentiment. Get your weekly $JPY forecast from @FxWestwater here:
  • Consolidation or bull flag? A bull flag is a continuation pattern that occurs as a brief pause in the trend following a strong price move higher. Learn how to better spot these formations here:
  • Crude and Brent oil are on track to extend higher as Gulf Coast supply disruptions and a positive OPEC report bolster sentiment. Uranium is on a massive surge, aided by the famous Wall Street Bets group. Get your market update from @FxWestwater here:
  • RT @michaeljburry: Read thread.
Dow Jones Forecast: Stocks Soar as History Suggests Further Volatility Ahead

Dow Jones Forecast: Stocks Soar as History Suggests Further Volatility Ahead

Peter Hanks, Strategist

Dow Jones Price Outlook:

  • The Dow Jones soared nearly 1,300 points (5%) on Monday as central banks hinted at stimulus
  • With investors buying into the talk, the onus is on central bankers to deliver follow-through
  • An early indication of their willingness to act will be offered at the upcoming RBA rate decision

Dow Jones Forecast: Stocks Soar as History Suggests Further Volatility Ahead

The Dow Jones climbed 5% higher on Monday as it recovered nearly 1,300 points from the Friday close which capped off the worst weekly performance for the index since the 2008 Great Financial Crisis. As stocks rallied, many analysts were eager to credit central bankers, finance ministers and government officials for their consideration of possible stimulus to combat the economic impacts of coronavirus. As a result, investors will look to the major central banks for assistance as stocks attempt to hold onto reclaimed ground.

Dow Jones Price Chart: Daily Time Frame (January 2018 – March 2020)

dow jones price chart

To be sure, current market conditions are at extremes and the resultant volatility and price action has relatively few historic parallels as a result. Most of the equitable occasions have coincided with major stock market crashes or global developments that make central bank intervention necessary to avert deeper declines.

With that in mind, it seems central bank intervention is not only likely, but perhaps necessary as an already flagging global economy grapples with a unique headwind.

Dow Jones Volatility Stands at Extremes

dow jones price chart and historical volatility

Dating back to 1940, the Dow Jones has witnessed a single day gain of more than 5% after a 5-day rate of decline greater than -10% only fifteen times – one of which was posted today. Concerningly, other such instances occurred during historically turbulent times like the aftermaths of the Dot-Com Bubble and Great Financial Crisis. Therefore, the current standing of the Dow Jones is precarious.

Dow Jones Volatility and Eventual Reversal in 2002

dow jones price chart

While previous instances were typically followed by rate cuts and other forms of stimulus to revive a struggling economy, many of the events were similarly followed by weeks of severe volatility and uncertainty. It can also be argued the longer-term performances are skewed due to the nature of the asset class.

Dow Jones Volatility During the Great Financial Crisis

dow jones price chart 2007

Either way, it seems as though the Dow Jones is amid a truly historic string of performances that could force the hand of the major central banks. That said, investors will eagerly await further commentary from central bankers and government officials on the steps being taken to combat the economic impact of coronavirus.

dow jones price chart and volatility in 2020

Early insight will be offered by the Reserve Bank of Australia, but officials from the ECB and US Government have already disseminated a willingness to act. Should policy change to meet expectations, the Dow Jones and other major stock indices may enjoy gradual recoveries, but history has shown the possibility of further declines in the weeks ahead remains regardless. In the meantime, follow @PeterHanksFX on Twitter for updates and analysis on the stock market.

--Written by Peter Hanks, Junior Analyst for

Contact and follow Peter on Twitter @PeterHanksFX

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.