Another day, another major milestone for the Dow Jones Industrial Average, on Thursday marked its first close above 34,000 in history and its fourth thousand-point barrier was lifted. just this year.
This achievement is unlikely to make Wall Street investors overjoyed as the performance becomes less impressive the higher the blue-chip benchmark market takes. After all, the move from 33,000 to 34,000 represents an increase of just over 3%.
However, the Dow
The former provides more evidence of the recovery that the market and economy are trying to complete from the depths hit at the outset of one of the worst pandemics in generations.
“The stock market continued to confirm optimistic forecasts from last year, predicting a strong economy driven by consumers leaving their homes, encouraged by vaccinations or by beliefs that COVID’s worst is behind us, “said Chris Zaccarelli, director. Investment officer for the Independent Advisory Coalition.
While people may not take their caps off 34,000, “today’s market has a lot to welcome,” said Anu Gaggar, senior global investment analyst at Commonwealth Financial Network.
“Consumers escaped the cold of February and went to stores with their pockets full to stimulate demand. As a result, retail sales were up 9.8%, much higher than consensus expectations and just behind last May’s figure, ”the analyst said in email comments. .
Markets also like what they see in the first set of first-quarter earnings reports, “with earnings momentum expected to continue through 2021,” says Gaggar.
Market participants have been consistently insecure about pricing, but that has yet to stop the security in any provable way.
The Dow needs 20 sessions to beat 34,000 from the day it crossed the 33,000 mark. It hit four 1,000-point milestones so far this year which has been the most since 2017, seeing five hits, according to Dow Jones Market Data.
contributed 264 points to Dow’s recent price-weighted run of thousands, with UnitedHealth Group
a dding close to 260 points and Microsoft
add about 140 points to the benchmark to 34,000.
In addition to the Dow on Thursday, the S&P 500 index
completed at an all-time high close and the Nasdaq Composite Index
has completed 0.4% from its record high on Feb. 12, which will complete the rebound after sliding into the correction zone, identified as a decline of at least 10% from the recent high, in early March.