By
Bhushan Akolkar
April 17th, 2024
The Dow Jones Industrial Average is leading the pack on a bull rally, after gaining 1,300 points as of March 26. Although still below last year’s lows, the 6.38% gain is the biggest 3-day surge ever recorded since 1931
Stock market investors have something to smile about as the week comes to an end, even in the midst of coronavirus confusion. This is because the Dow Jones Industrial Average has surged more than 1,300 points, approximately 6.38% as of March 26. The pump has rejuvenated a lot of hopes from many who have been worrying about a possible recession. Although still trading below last year’s lows, the rise has been the best 3-day surge ever recorded since 1931.
The federal government has been working round the clock to provide policies that will cushion the market from tumbling further. This includes the ongoing coronavirus stimulus bill, which is awaiting the House of Reps to approve it without much to debate. In addition, the fed has cut the interest rates to zero, in bid to stir up the slow economic growth that has been the order since coronavirus was declared a global pandemic
It is worth noting that the S&P 500 is also on the rising trend after breaking the downward trend. At the time of writing, it reached the level of 2,630.07, whereby it gained over 400 points since the bell rang on Monday. Its market chart of the middle (1hr) time frame has been forming higher highs and high lows, a good indicator of a rising trend.
The case is similar to the Nasdaq 100 Index, which has surged 400 points, approximately 5.72%. Yesterday, it hit the mark of 7,897.13. Although still early to make the call, the bears seem to be giving up on bulls that seem tenacious to push even higher. It was a huge relief on most investors who had been seeing a depreciating value in their portfolio.
Fundamentals that Affect Dow Jones
It is a time to enjoy the win but at the same time, keep your third eye open on how things unfold in the next few weeks and also months. This is because we are in uncertain times where the world is dealing with a virus never experienced before, and it can drastically evolve in any direction.
This was echoed by the Chief Investment Officer at Bleakley Advisory Peter Boockvar. He said:
“We all know the pain being felt and the economic damage being caused by this damn virus but because we are so close to getting past the worst spread, we need to start getting creative about what the restart will look like.”
It is prudent to closely watch the Fed’s policy that will come forth in the near future. The Fed Chairman Jerome Powell, however, said that the Fed will not run out of ammunition to keep the economy stable.