US Blue-Chip Index Eyes Fresh Peak Amid Tech Rally

Dow Jones US2605661048

The Dow Jones Industrial Average continued its upward trajectory on Monday, advancing closer to its record high. The benchmark index for US blue-chip stocks closed at 49,412 points, marking a gain of 0.64%. This strength was supported by a rally in technology shares and a softening US dollar. However, market direction in the near term may hinge on different catalysts.

Investor attention is now firmly fixed on the Federal Reserve's upcoming policy announcement scheduled for Wednesday. Any guidance on the future path of interest rates is expected to trigger significant market movement. This week also brings a slew of quarterly earnings reports from major technology firms. Meanwhile, the price of gold surpassing $5,000 per ounce signals that caution persists among investors, even amid the equity market's gains.

Trading activity was robust, with volume reaching 453 million shares, underscoring sustained investor engagement. From a technical perspective, the index is trading above its key moving averages, a positive signal. The Relative Strength Index reading of approximately 60 suggests there is room for further advancement before the index enters overbought territory.

Sector Performance: Winners and Losers

Technology companies provided substantial momentum. Cisco Systems surged 3.24%, ranking among the index's top performers. Apple also delivered a significant boost, its shares jumping 2.97%; the company's substantial weighting in the price-weighted Dow Jones index amplified its impact. Caterpillar rounded out the list of notable gainers with an increase of 1.59%.

On the downside, 3M led the decliners, shedding 1.92%. Healthcare giant UnitedHealth Group retreated by 1.31%, while aerospace leader Boeing declined 1.51%.