DowJonesWall Street 30TRADENATION:US30Batsman-EdwardMarkets extended their risk-on rally as falling oil prices and softer US inflation data eased fears of a stagflationary shock to the global economy. Investors continued rotating back into equities while bond yields declined for a sixth consecutive session, reinforcing expectations that the Federal Reserve may remain on hold rather than resume tightening. The main catalyst remained the sharp decline in crude oil prices amid optimism surrounding a potential US-Iran agreement and improving prospects for normalised energy flows through the Strait of Hormuz. Brent crude fell to around $92/bbl, marking an over 18% decline for May — the steepest monthly drop since the Covid-driven collapse in March 2020. Lower energy prices reduced inflation concerns and improved sentiment toward growth-sensitive assets. US inflation data added to the positive tone. April PCE inflation came in softer than expected, with headline PCE rising 0.4% and core PCE increasing only 0.2%. The data helped reduce expectations for additional Fed tightening, while comments from Fed officials suggested policymakers are not eager to raise rates unless inflation reaccelerates materially. Equities responded positively: The Dow Jones benefited from lower Treasury yields and improving economic sentiment. The S&P 500 reached another record high, extending gains for a sixth straight session. Treasury yields continued falling, with the US 10-year yield dropping toward 4.45%, supporting broader equity valuations. In corporate developments: SpaceX reportedly lowered its IPO valuation expectations to around $1.8 trillion from earlier projections above $2 trillion, reflecting more cautious investor appetite despite continued enthusiasm around AI-linked growth themes. Blue Origin suffered a setback after its New Glenn rocket exploded during testing, potentially strengthening SpaceX’s competitive position in the commercial space and satellite market. Conclusion For Dow Jones traders, the current environment remains supportive for equities as easing oil prices, softer inflation, and falling bond yields reduce pressure on both consumers and the Federal Reserve. The market is increasingly pricing out worst-case stagflation scenarios, creating a favourable backdrop for cyclical and growth-oriented stocks. However, sentiment remains highly sensitive to geopolitical developments in the Middle East. A confirmed US-Iran agreement could extend the rally by pushing oil prices even lower, while any disruption to negotiations could quickly reverse recent gains in equities and bonds. Near term, the Dow’s direction will likely remain driven by energy prices, Fed expectations, and geopolitical headlines. Key Support and Resistance Levels Resistance Level 1: 50250 Resistance Level 2: 51600 Resistance Level 3: 51920 Support Level 1: 50160 Support Level 2: 49900 Support Level 3: 49490