Djia Closes The Week In Green

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Djia Closes The Week In Green

Djia Closes The Week Above 40,000

The Dow Jones Industrial Average (DJIA) has now recovered most of its lost ground after the release of the US CPI. The DJIA has closed the week above 40,000 on a positive note, which means the prospects of rate cuts are back on the cards.

The US CPI has touched a 3-month low, allowing the riskier assets such as the DJIA to turn higher. Now, investors believe that the Fed will deliver two rate cuts in 2024, which is a good thing for the DJIA, S&P 500, & other US indices.

Rate Cut Hopes Send Djia Higher

Despite the growing optimism over rate cuts, the commentary from the Fed officials remained hawkish. The highlight of the week was from Fed Michelle Bowman, who said that the disinflation progress in 2024 is not as good as they had hoped.

He also added that the inflation is still higher than the market forecasts, which could even lead to more rate hikes instead of rate cuts.

Looking at the DJIA, the index has managed to close near 40K, the highest level in the near past. The Dow Jones has also successfully managed to close its 4th week in green and is already up by 6.5% for the year.

For the current week, the DJIA has gained 1% and even closed Friday's session in green. The bigger picture suggests that the DJIA is under the control of the bulls as long as the 200 EMA near 37067.12 is defended.

While most of the US indices are printing record highs, many analysts believe caution is needed on accounts of short-term volatility.

The analysts at Wells Fargo believe that the US markets will go through a period of choppiness as the investors will try to unravel the mystery of when the rate cuts are going to happen.

Almost 75% of the DJIA constituents closed the Friday in green which is a sign that bulls remain in charge. The Caterpillar Inc. (CAT) was one of the top performers as it gained 1.58% during the Friday's session.

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