Dow Jones Futures Decline, Oil Surpasses $100, South Korea Considers AI Tax

Oil prices have crossed the $100 mark, with Brent approaching $107. With the Relative Strength Index (RSI) above 70, a modest correction may be expected in the short term. The decline in the Dow Jones has heightened market uncertainty, while the impact of AI tax news may remain limited. Overall, the price is likely to trade within the $107–$110 range over the next 1–3 days.

A decline in Dow Jones futures coupled with oil prices breaking the $100 threshold could exert short‑term pressure on the market. The index’s RSI sits at 54.8 and the price is above its simple moving averages, yet the MACD remains below its signal line, signalling weak short‑term momentum. South Korea’s recent decision to impose an artificial‑intelligence tax may not directly impact the sector, but it could heighten overall risk sentiment. Analysts expect the index to experience a modest dip over the next one to three days; however, additional data will be required to confirm the persistence of the long‑term trend.

WTI crude oil has recorded a strong rally, rising above $100. While the RSI at 68 approaches overbought territory, it has not yet given an overbought signal. The MACD line remains above the signal line and in positive territory, indicating that short-term upward momentum continues. However, a decline in Dow Jones futures and a decrease in overall market risk appetite could put pressure on oil prices. Therefore, a sideways trend can be expected in the short term.

XOM stock is trading in a favorable environment for the energy sector as oil prices surpass $100. Technical indicators point to short-term upside potential, with the RSI near 60 and the MACD above its signal line. The price trading above the 20-day moving average further supports this view. However, a decline in Dow Jones futures and trading just below the 50-day moving average suggest that the upside may be limited. Therefore, I assess the outlook with moderate confidence in an upward direction.