Dow records longest rally since 2017 ahead of rate policy decision

As traders considered the most recent earnings reports, the Dow Jones Industrial Average closed higher for the 12th straight day, recording its longest winning streak in more than six years. The Dow gained 26.83 points, or 0.08%, to reach 35,438.07, making it the 30-stock index’s 12th straight winning session and its longest advance since February 2017.

Even though the company raised its full-year earnings guidance, General Motors shares slumped 3.5%. Due to second quarter revenue that was stronger than anticipated, General Electric increased by almost 6.3%. Following a tentative agreement with the Teamsters union that prevented a strike, UPS’s stock dropped 1.9%.


those of PacWest Bancorp fell 27% while those of Banc of California rose 11%. The Wall Street Journal reported that Banc of California is in advanced negotiations to acquire PacWest, citing persons with knowledge of the situation.


Additionally, investors are anticipating the Federal Reserve’s policy decision on Wednesday and will analyse Chairman Jerome Powell’s remarks for his assessment of the economy. However, they are less certain about what policymakers will do in September. Investors are largely expecting the Fed will increase rates by a quarter percentage point. They must be persuaded that inflation is consistently moving in the direction of their goal.

Higher rates are having an adverse effect on buybacks. Despite usually increasing up at this stage of the results season, corporate client buybacks halted and have been tracking below seasonal patterns since May. In 2023 compared to the same period in the previous year, buybacks among corporations that have reported are down 30%.