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On Monday, the Dow Jones Industrial Average increased by more than 150 points. As market sentiment rises, stocks are gaining ground. Fears of a recession have subsided in the wake of positive US data.
As US market indices often gain ground, the Dow Jones Industrial Average (DJIA) increased by more than 150 points during subdued trading on Monday. Investors’ appetite for risk has returned following a recent widespread sell-off that was spurred by new recession worries as a result of US economic data that turned negative earlier than many had anticipated. However, an increase toward the end of a recent set of US data has allayed investor concerns, and markets are rising again overall.
Now, with the Jackson Hole Economic Symposium coming up later this week, the markets will shift to concentrate entirely on the central banks’ impending speaking notes. The CME’s FedWatch Tool indicates that markets are still fully priced in a September rate cut at the present level. After reaching a two-week high of over 70%, the odds of a double cut for 50 basis points have decreased to less than 25% this week as rate speculators have increased their bets on a more sensible 25 basis point drop on September 18.
On Monday, the majority of the Dow Jones is rising, with more than two-thirds of the equities board moving higher. MCD, or McDonald’s Corp., is increasing in value, rising 3.4% to $288.00 per share. Then came Intel Corp. (INTC), which increased 2.5% to $21.39 per share.
At the other extreme, Apple Inc. (AAPL) dropped -0.7% to $224.50 a share, while Boeing Corp. (BA) dropped a whole percent to $178.15 per share as the aviation industry struggles to deliver value to investors.
Dow Forecast
Monday is expected to see the Dow Jones produce its fifth consecutive bullish candle, reaching an intraday high of 40,907.54. The major equity index has been rising since it touched a recent near-term low of 38,382.90.
The DJIA is slowly grinding its way back towards all-time highs set in July at 31,371.38, and bullish momentum remains the flavor of the week as investors claw back ground. A technical floor is priced in at the 50-day Exponential Moving Average (EMA) at 39,728.00.
