The Monday after the Superbowl saw Dow Jones continue its bull run, which has been supporting the prices since the beginning of the month. Tech stocks played a crucial role in pumping the prices up as investors anticipate key corporate earnings.
Dow Jones Industrial Average
The Dow Jones Industrial Average [DJI] surged by 0.7 percent from 25,064 and climbed 175.48 points to 25,239. Since January 3, the index has seen consistent growth from 22,686 and has not seen any considerable low. The bullish momentum on Monday was fuelled by the strong performance by Microsoft and Apple.
The S&P 500 [SPX] also continued its upward movement and rallied from 2,706 to 2,724, running hand in hand with the hike in the tech stocks. The 0.68 percent gain resonated movement of DJI and Nasdaq and the cumulative stock market recovers from the slump it experienced towards the end of 2018.
The stocks which experienced a considerable hike over the past were Facebook, Apple, Netflix, and Google-parent Alphabet, who all closed the day at least 2 percent higher than their opening valuation. Apart from these tech giants, Technology Select Sector SPDR fund [XLK] also saw a 1.6 percent hike in prices.
However, Alphabet shares faced an unexpected setback. Following the release of the company’s release of quarterly earnings, which portrayed an arguably dismal image, stocks fell by 2 percent in a couple of hours. Gilead also suffered a bear attack and crashed 2.3 percent on earnings.
The Federal Reserve’s position on normalizing the monetary policy, which many deem as extremely binding and too soon, has investors worried about the market’s future. This fear dwindled lightly last week when the Fed made an official statement that they will be patient before the implementation of the policy and study the matter deeply.
A Twitter user, Yuriy Matso, commented on the market movement:
“$YM_F Dow Jones has already retraced almost 70% of the Oct-Dec correction. If (to be confirmed next week) it continues going higher, it might get to the previous highs in a month. This should be followed by a consolidation phase to shake out the weak hands. Then a big break out.”
Another Twitter user, Kryptowavetradr, stated:
“$SPX People who tried shorting last week got their stops ran. Still has a little bit more room to go to around 2730-2740. Thats where I would be looking for shorts.”