Dow Jones Poised for Second Weekly Gain

The Dow Jones Industrial Average (DJIA) traded sideways on Friday, experiencing minor fluctuations within a narrow range. Despite this subdued end to the week, equities remain firmly on a bullish trajectory, with the index poised for its second consecutive week of gains.

The release of US Purchasing Managers’ Index (PMI) data, which showed mixed results, had little impact on market sentiment. The Manufacturing PMI registered a modest improvement, while the Services PMI contracted slightly.

While some Dow components experienced losses, notably Nvidia, others, such as Walt Disney, saw significant gains. Disney’s strong performance reflects investor optimism following the company’s impressive 24% return in 2024.

The Dow Jones currently hovers near its record high of 45,000, having recovered from a recent six-week decline. This renewed bullish momentum suggests a strong market appetite for risk. The immediate hurdle for the Dow is the 45,000 level itself. A potential pullback towards the 50-day Exponential Moving Average (EMA) near 43,275 could temporarily dampen bullish momentum.