- The Dow Jones gains 1.78% today.
- The Nasdaq 100 rises 1.85% on the day.
- The S&P 500 rose 1.69% on Friday.
The Dow Jones rebounds from a more than six-week low not seen since Nov. 5 at 42,029, hitting two-day highs at 43,093.
The Dow Jones Industrial Average opened trading at 42,316, while the Nasdaq 100 technology index opened at 21,071. The S&P 500 opened at 5,864, ending a streak of three consecutive sessions of losses.
The Dow Jones remains in positive territory encouraged by Goldman Sachs and Salesforce
The Dow Jones Industrial Average is trading at the time of writing at 42.803, gaining 1.78% on the day, reaching two-day highs at 43.093.
Salesforce (CRM) shares gained 2.51% today, ending three consecutive sessions of decline, reaching the highs of December 18 at 345.38. In the same vein, shares of the investment bank Goldman Sachs (GS) rose 2.62% on Friday, reaching two-day highs of $569.70.
DexCom and Applovin Corporation boost gains on Nasdaq 100
The Nasdaq 100 technology index rallies 1.85%, currently trading at 21,480, bouncing from November 27 lows of 20,729.
DexCom (DXCM) shares are up 6.97% today, hitting highs not seen since December 11 at $81.11. On the other hand, Applovin Corporation (APP) rallies 5.87%, trading at the time of writing at $337.46, reaching two-day highs at $339.39. The Nasdaq 100 ends two consecutive sessions with losses, partially recovering from the fall suffered after the Federal Reserve’s projections for 2025.
The S&P 500 trades higher after statements by Fed members
The S&P 500 index rebounds 1.69% daily, currently trading above 5,963, reaching two-day highs of 5,970, in line with the main stock indices.
The president of the Federal Reserve Bank of San Francisco, Mary Daly, highlighted today that her projections consider much fewer rate cuts next year than she had initially thought, keeping in line with the statements of Austan Goolsbee, president of the Chicago Federal Reserve, indicating that the path of interest rates will be determined by the evolution of employment.
On the other hand, core PCE inflation in the United States stood at 2.8% year-on-year in November, below the expected 2.9%, matching the figures reached in October.
Technical analysis of the Nasdaq 100
The Nasdaq 100 reacted higher at short-term support at 20,729, given by the 38.2% Fibonacci retracement. The next key support is seen at 20,293, the low of November 19. To the north, the closest resistance lies at the 22,131 December 16 pivot point.
Nasdaq 100 4-hour chart
Dow Jones FAQs
The Dow Jones Industrial Average, one of the world’s oldest stock indices, is made up of the 30 most traded securities in the United States. The index is weighted by price rather than capitalization. It is calculated by adding the prices of the securities that comprise it and dividing them by a factor, currently 0.152. The index was founded by Charles Dow, also founder of the Wall Street Journal. In recent years it has been criticized for not being sufficiently representative, since it only follows 30 companies, unlike broader indices such as the S& P 500.
There are many factors that drive the Dow Jones Industrial Average (DJIA). The main one is the aggregate performance of its component companies, revealed in quarterly corporate earnings reports. US and global macroeconomic data also contribute, influencing investor sentiment. The level of interest rates, set by the Federal Reserve (Fed), also influences the DJIA, as it affects the cost of credit, on which many companies largely depend. Therefore, inflation can be a determining factor, as well as other parameters that influence the decisions of the Federal Reserve.
The Dow Theory is a method for identifying the main trend of the stock market developed by Charles Dow. A key step is to compare the direction of the Dow Jones Industrial Average (DJIA) and the Dow Jones Transportation Average (DJTA) and only follow trends where they are both moving in the same direction. Volume is a confirmation criterion. The theory uses elements of maximum and minimum analysis. The Dow theory proposes three phases of the trend: accumulation, when the smart money begins to buy or sell; public participation, when the general public joins the trend; and distribution, when the smart money abandons the trend.
There are several ways to trade the DJIA. One of them is to use ETFs that allow investors to trade the DJIA as a single security, instead of having to buy shares of the 30 companies that comprise it. A prominent example is the SPDR Dow Jones Industrial Average ETF (DIA). Futures contracts on the DJIA allow traders to speculate on the future value of the index, and options provide the right, but not the obligation, to buy or sell the index at a predetermined price in the future. Mutual funds allow investors to purchase a portion of a diversified portfolio of DJIA securities, providing exposure to the global index.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
