Wall Street celebrated another victory on Friday as the Dow Jones Industrial Average (DJIA) crossed the 44,000 threshold for the first time in history. This milestone achievement comes amidst a broader market uptrend, fueled by a surge in consumer confidence. The University of Michigan (UoM) sentiment survey, which exceeded expectations, underscores this positive sentiment.
The Dow Jones Industrial Average (DJIA) ascended to new heights on Friday, breaching the 44,000 level for the first time. This bullish surge capped a remarkable week for equities, with the Dow posting its best weekly performance since October 2023, fueled by a nearly 5% gain and three consecutive record-breaking days.
The University of Michigan (UoM) Consumer Sentiment Index reinforced the positive market sentiment. The November reading of 73.0 outpaced expectations of 71.0 and October’s 70.5, signaling growing consumer optimism about the U.S. economy. However, a slight uptick in 5-year Consumer Inflation Expectations to 3.1% from 3.0% tempered this optimism.
Source: create.vista.com
A Trump Rally and Fed Rate Cut Fuel Stock Market Surge
The stock market experienced a significant rally this week, driven by a combination of factors. The decisive victory of the former President and the Federal Reserve’s decision to cut interest rates by 25 basis points ignited a bullish sentiment.
The Dow Jones Industrial Average closed the week on a high note, with over two-thirds of its components trading in positive territory. Several notable performers included McDonald’s, UnitedHealth, and Procter & Gamble, all of which gained around 2% and set new highs.
On the other hand, Caterpillar underperformed due to lower equipment sales and unfavorable inventory adjustments.
Technically, the Dow Jones remains firmly overbought, with limited short-term downside potential. However, the long-term trend remains bullish, as the index continues to outpace its 200-day Exponential Moving Average and posts consistent monthly gains. As long as buying interest persists, the Dow Jones is expected to maintain its upward trajectory.
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