Dow Jones advances amid improved risk appetite

The Dow Jones climbed to a five-day high on Monday near 38,400.00 before settling close to 38,230.00 at the closing bell. The major equity index is still down over 4% from late March’s record peaks, but it continues to pump the brakes on any meaningful declines, trading well above the 200-day Exponential Moving Average (EMA) at 36,683.77.

The Dow Jones Industrial Average (DJIA) has surged above 38,400.00 to start the new trading week, with market sentiment recovering after concerns over a Middle East altercation. The index is now firmly in the bullish side, with broad-market investor sentiment improving after last week’s heightened concerns.

The S&P Global Purchasing Managers Index will start the week with forecasts for manufacturing and services. The US Gross Domestic Product (GDP) for the annualized first quarter is expected to ease back to 2.5% from 3.4%, while a fresh round of US Crude Personal Consumption Expenditures (PCE) is expected to hold steady at 0.3% for March.

On Monday, only five of the thirty securities in the Dow Jones Industrial Average were in the red, with Verizon Communications Inc. (VZ) leading the charge into bear country. Goldman Sachs Group Inc. (GS) was the top gainer, climbing 3.3% to trade into $417.35. JPMorgan Chase & Co. (JPM) gained nearly 2% and ended Monday near $189.41 per share.