- Summary:
- The Dow Jones index rose as the market ignored the weak nonfarm payrolls numbers. US stocks are rising because investors are looking for recovery
US stocks roared back today as investors moved past the record 20 million nonfarm payrolls and the higher unemployment rate. The market seems to believe that the worst is over for the US economy now that most states are starting to reopen their economies. The Dow Jones index rose by more than 300 points while the S&P 500 and NASDAQ rose by more than 1%.
All Dow Jones stocks rise
Surprisingly, all stocks in the Dow Jones index were in the green today. The best-performer was Boeing, the troubled aircraft manufacturer, whose stock rose by more than 4%. The stock continued the rally started yesterday after the company said it was seeing some of its production. The next big winner was Dow Chemical followed by JP Morgan and Disney. The worst performers in the index were Walmart, Pfizer, and McDonalds.
US stocks rise as trade tensions fade
Trade was another reason why the Dow Jones index rose today. Yesterday, China’s Liu He held a phone conversation with Robert Lighthizer and Steve Mnuchin, the Treasury Secretary. The team committed itself to ensuring that the trade deal that was signed in January is implemented. This calmed the market, which was expecting an escalation of tensions between the two countries.
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Dow Jones index technical outlook
On the four-hour chart, the Dow Jones has been on an upward trend and has been guided by the red trend line shown below. The index has also moved above the 50% Fibonacci retracement level and the 50-day and 100-day exponential moving averages. Therefore, there is a possibility that bulls will remain in control as they attempt to retest the 25,000-resistance level, which is along the 61.8% retracement.
On the flip side, a move below the 50% retracement level of 23,685 will mean that there are still sellers in the market. This will see them push the price lower to the 23.6% Fib level of 22,300.