The Dow Jones Industrial Average (DJIA) is one of the most important indexes in the American market and a worldwide benchmark.
It comprises the 30 strongest industrial companies with the largest capitalization on the New York Stock Exchange.
Dow Jones returned to generate gains and also obtained a new all-time high, taking the price to the 38280 point zone.
This excellent upward movement generated in the index was due to different factors generated in the fourth week of January 2024, such as uncertainties regarding interest rates, published macroeconomic data and the financial results report of some companies.
To begin with, the continuation of this rally in this month of January 2024, which has not stopped rising since October 2023, could be attributed to the decline in investor expectations that the Federal Reserve will lower interest rates in the first quarter of 2024. This change is due to the perceived strength of the U.S. economy.
Derived from the above, this increase in the price could be identified by certain macroeconomic data announced during the past week, quite positive for the U.S. economy.
On Wednesday 24, the manufacturing PMI was released, 50.3 versus 47.9 expected, and the services PMI, 52.9 versus 51 expected. Likewise, on Thursday the 25th, the GDP data was announced, generating an excellent increase of 3.3 % against a forecast of 2.0%. These excellent results have signaled to investors that the economy is on the upswing and raise hopes that the economy has avoided a deep recession.
Likewise, companies listed in the Blue Chips index, with great weight in the market, helped to continue a new day of gains, such as American Express, which did not deliver data as expected for the fourth quarter of 2023, EPS 2.62 vs. 2.64 and revenues of 15.8B vs. 16B, but experienced a significant increase of 7%, on Friday 26, generating a new all-time high and taking the price to the area of 204.00 USD per share.
We also have Microsoft Corporation, who is also listed in this index, which is in the area of historical highs and maintaining its capitalization of 3 trillion dollars, continuing to be the company with the largest capitalization in the world.
In conclusion, the Dow Jones index (US30) has shown us since October 2023 and the beginning of 2024, its great potential and growth. Regardless of its falls, we see how the index of the 30 industrial companies in the United States recovers and continues to generate gains year after year.