Dow closes more than 500 points higher to start the week as investors await Fed meeting, inflation data
The Dow Jones Industrial Average jumped Monday, clawing back some of the steep losses from the previous week, as traders looked ahead to a highly anticipated Federal Reserve meeting and new inflation data.
The blue-chip Dow added 528.58 points, or 1.58%, to 34,005.04. That was its first close over 34,000 since Dec. 2. The S&P 500 gained 1.43% to close at 3,990.56, and the Nasdaq Composite rose 1.26% to 11,143.74.
A lift in Boeing shares pushed the Dow higher following reports that the airline is close to a deal with Air India. Elsewhere, energy stocks rose as oil prices steadied, following several weeks of declines.
Wall Street is coming off a rocky week that saw all three major averages lose ground. The Dow and S&P 500 had their worst weekly losses since September, falling 2.77% and 3.4%, respectively. The Nasdaq dropped about 4%.
“Today’s action is mostly a reflex bounce after last week’s poor performance,” said Yung-Yu Ma, BMO Wealth Management’s chief investment strategist. “There’s probably some cautious optimism ahead of tomorrow’s CPI report, but also some underlying concern. We can see that concern today in an up market for equities that actually has the VIX rising quite sharply.”
“Europe, which outperformed last week is down today while the U.S. is bouncing,” he added. “It speaks to a choppy market with low conviction; strong markets have better uniformity.”
DOW JONES TECHNICAL ANALYSIS
Dow Jones is currently trading in up channel.
Dow Jones is currently trading above all SMA
RSI is in buying zone which suggests bullishness and Stochastic is suggesting up trend.
Dow Jones immediate resistance is at 34077 & its immediate support level is at 34023
HOW TO TRADE DOW JONES INDEX IN THIS WEEK
Dow Jones is moving in up channel; it will remain in up channel until any trend reversal. So, remain bullish on it.