Dow Jones is on a new record high amid rising value stocks, strong economic data, and an improving risk appetite. On Friday, the index was up by 0.93% at 34,548.53 points. Similarly, S&P 500 is up by 0.82% at4,201.56 points while Nasdaq has risen by 0.37% at 13,632.84 points.
Notably, value stocks are outperforming growth stocks; a trend that has supported the stock market. On Friday, Vanguard Value ETF (VTV) was up by 0.87% at 139.60. The Vanguard Growth ETF (VUG) also rose at the same rate to its current 268.87. However, since Tuesday, VTV has been rising at a higher rate than VUG.
Strong economic data have further fuelled the trend. On Thursday, the US jobless claims came in better-than-expected at 498,000. Analysts have predicted a reading of 540,000. In today’s session, the focus is on the nonfarm payroll data. Goldman Sachs expects it to rise by 1,300k. Strong jobs data will further improve the risk appetite; pushing Dow Jones to higher levels.
Technical Outlook
Dow Jones is at a new record high at 34,548.5 points; up by 0.93%. Since Tuesday, it has surged by about 2.31%. On an hourly chart, it is trading above the 25 and 50-day exponential moving averages. With the ongoing risk appetite, bulls will now target the next level at 34,800. On the flip side, it may pull back to 34,400 before reviving its uptrend.
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Dow Jones Chart
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