The Dow Jones Industrial Average is one of the oldest indices in the world. It is also one of the most closely-followed indices in the world. This is because of its size and the importance of the companies that make it. These companies have a combined market capitalization of more than $7 trillion. They include companies like Apple, Boeing, and Caterpillar among others.
This year, the Dow index has been one of the best-performing indices, gaining by more than 7%. This upward surge came after the large dip that happened in December when the index reached a low of $21683. Yesterday, the index ended the day at $24,425 as investors cheered the ongoing trade talks. Investors have largely been satisfied by the just-concluded earnings season and the forward guidance. They have also cheered the new stand by the Federal Reserve, which has turned dovish. Indeed, part of the reason why the Dow reached a low in December was because of the fear of higher interest rates.
This week, eyes are focused on the government shutdown and the trade talks between United States and China. Yesterday, Trump said that he was disappointed with the compromise deal made between congressional democrats and republicans. He however opened chances of a compromise as well. On trade, he said that he was open to extending the March 1 deadline. If he does this, it may be a signal that the negotiations are making progress.
In case of a deal between the two countries, there is a likelihood that the index will continue with the winning streak. If this happens, the index could test the previous high of almost $27000.