Dow Jones climbs on Monday as risk appetite lurches higher

• Investors pile back into US equity indexes to kick off the new week.
• Market sentiment is recovering as key US data looms ahead.
• DJIA surges above 38,400.00 before returning to 38,200 heading into the closing bell.

The Dow Jones Industrial Average (DJIA) is on the run into the top side to open the new trading week, with the index climbing into a five-day peak above 38,400.00. Overextended bidding came quickly under heel, keeping the index pinned near 38,200.00, but US indexes are kicking off the new trading week firmly into the bullish side.

Broad-market investor sentiment is improving after last week’s heightened concerns over a growing altercation in the Middle East. Cooler heads have prevailed, allowing investor confidence to seep back into the boards.

Tuesday kicks off the US’ economic data docket with the S&P Global Purchasing Managers Index. The Manufacturing component is forecast to tick up slightly to 52.0 in April from March’s 51.9, while the Services component is expected to climb to 52.0 from the previous 51.7.

US Gross Domestic Product (GDP) for the annualized first quarter prints on Wednesday and is expected to ease back to 2.5% from the previous print of 3.4%, while Thursday sees a fresh round of US COre Personal Consumption Expenditures (PCE). US PCE inflation is expected to hold steady at 0.3% for the month of March, while the YoY figure is forecast to tick down slightly to 2.6% from 2.8%.

Dow Jones news

Of the thirty securities that make up the Dow Jones Industrial Average, only five were in the red on Monday, with Verizon Communications Inc. (VZ) leading the charge into bear country. VZ fell nearly 5% on the day, declining -1.89 to trade at $38.60 per share.

The Dow’s top gainer to start the week was Goldman Sachs Group Inc. (GS), which climbed 3.3% on Monday to trade into $417.35. GS was followed by JPMorgan Chase & Co. (JPM) which gained nearly 2% and ended Monday near $189.41 per share.

Dow Jones technical outlook

The Dow Jones climbed to a five-day high on Monday near 38,400.00 before settling close to 38,230.00 at the closing bell. The major equity index is still down over 4% from late March’s record peaks just shy of the 40,000.00 mega handle. Despite downside momentum, the Dow Jones continues to pump the brakes on any meaningful declines, with the index trading well above the 200-day Exponential Moving Average (EMA) at 36,683.77.

Dow Jones daily chart