Dow Jones Industrial Average [DJI], after a steep fall last year, had climbed back after the bulls took over the market with support from the tech sector. After a constant rise from 22,894 on January 4, 2019, the index climbed over 2,500 points to close at 25,425 on February 12. On Wednesday, the market continued to rise and closed at 25,543.
On Wednesday, the market opened at 25,480 and climbed 117 points to close at 25,543. This meager growth of 0.46% was fueled by the outperformance of tech stocks and the apparent culmination of the US-China trade deal stand-off as US representatives look to sort out the issue before the March deadline.
On Wednesday, Walgreens Boots Alliance and 3M saw exceptional growth, which persuaded many of the top stocks to increase marginally. Alphabet [GOOGL] registered a gain of around 0.78%, outweighing the meager gains noted by other stocks ranging between 0.1% – 0.3%. Apple [AAPL], on the other hand, saw very less volatility after a decent rebound from its early – January low of 142.
However, not many share the optimism showcased by the market as Petra Bakosova, the chief operating officer at Hull Tactical, had a bearish prediction for the market:
“We have become very defensive over the course of last couple of week or so. We’re getting back to the point where we’re seeing the market becoming overvalued. December sell-off was an opportunity for investors if brought valuations to more reasonable levels.”
A Twitter user, @bhooper71372154, commented:
“US stock index futures are higher this Thursday morning. $Dow Jones Industrial Average futures rose, indicating a positive open. Futures on the S&P and Nasdaq were also seen slightly higher. Watching $APPL $GOOG. Happy Trading/Valentines Day.”
Another Twitterati, Kip Herriage, said:
“Bull markets end in investor euphoria. Sentiment hitting 70-80% bulls. Retail investors selling homes/assets to become day traders. Taxi/Uber drivers passing out hot stock tips. Common predictions of Dow Jones 75-100k. We’re years away from investor euphoria. But it’s coming.”