The Dow Jones Industrial Average (DJIA) saw a significant 100-point increase on Friday, marking one of its best weeks of the year. Starting off on a low note, bids tested the waters early in the day before rallying to the 40,500.00 level. Investors are now witnessing one of the index’s top weekly performances so far in 2024.
With a nearly 4% increase from Monday’s opening prices, investors are hitting the buy button as positive US economic data helps dispel fears of a recession. Consumer sentiment indicators, including the University of Michigan’s August Consumer Sentiment Index, rose to 67.8, surpassing expectations and boosting investor confidence.
Despite Consumer Inflation Expectations holding steady at 3.0% MoM, the likelihood of a double rate cut from the Federal Reserve in September has decreased to just 25%. However, markets are still anticipating some form of rate adjustment on September 18, with a 75% chance of a 25 bps rate cut.
Dow Jones Market Update
On Friday, the majority of the Dow Jones index was in the green, with only a few stocks seeing losses. Caterpillar Inc. (CAT) and Microsoft were among the decliners, while Boeing Co. (BA) and Cisco Systems Inc. (CSCO) led the gains. The index is on track for a 3% weekly gain, inching closer to its all-time highs set in mid-July.
Dow Jones Forecast
The Dow Jones is approaching a 3% weekly gain on Friday, positioning itself for the best performance of the year. As prices near the 41,000.00 mark, investors are eyeing the possibility of reaching new highs after a brief dip last week. The index continues to trade above the 200-day EMA, indicating a strong upward trend.
Economic Indicator Insights
Last release: Fri Aug 16, 2024 14:00 (Prel)
Frequency: Monthly
Actual: 3%
Consensus: –
Previous: 3%
Source: University of Michigan
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