The Dow Jones Industrial Average notched its fourth consecutive session of gains on Tuesday, adding 79.73 points to close at 48,442.41. The advance was powered by a significant upward revision to US economic growth figures, which painted a picture of resilient expansion alongside moderating inflation pressures.
Robust Growth Meets Dovish Expectations
Third-quarter US Gross Domestic Product (GDP) was revised higher to an annualized rate of 4.3%, surpassing economist forecasts of 3.2%. This combination of stronger-than-expected growth and a market expectation for future interest rate cuts is creating an ideal backdrop for equity investors. Futures markets are now pricing in two additional Federal Reserve rate cuts by the end of 2026.
A key component of the GDP report, consumer spending, increased by 3.5%, providing fundamental support for the market’s optimism. This strength was reflected in the performance of major consumer-facing technology companies, with Amazon shares rising 1.6% and contributing to the index’s upward move.
Sector Performance Diverges
While the Dow saw a moderate climb, broader market indices posted stronger gains. The S&P 500 advanced 0.46%, and the Nasdaq Composite rose 0.57%, outperforming the blue-chip average. Leadership came from growth-oriented technology shares, with Nvidia gaining 3.0% and Broadcom adding 2.3%.
However, the rally showed a narrow focus. The Russell 2000 index, which tracks smaller companies, fell 0.6%, indicating the buying interest is concentrated in large-cap stocks rather than the broader market.
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Interestingly, alongside the rally in growth stocks, precious metals surged. Gold prices reached a new all-time high of $4,515 per ounce, a gain of 1%, while silver jumped 4% to $71.60. This simultaneous strength suggests investors are employing a barbell strategy—combining exposure to high-growth equities with traditional safe-haven assets as a hedge against long-term uncertainties.
The US Dollar Index, which measures the currency against a basket of peers, fell 0.4% to 97.90. A weaker dollar typically benefits the overseas earnings of multinational corporations, many of which are components of the Dow Jones Industrial Average.
Technical Outlook and Holiday Schedule
From a technical perspective, the index’s posture remains positive. It continues to hold above support at the 48,360 level, and momentum indicators like the Relative Strength Index (RSI) suggest room for further advancement. The immediate technical hurdle is seen at 48,500 points; a decisive break above this level could pave the way for a move toward 50,000 in the early part of the new year.
Trading activity is expected to thin ahead of the holiday closure. US markets will close early at 1:00 PM ET on Wednesday, December 24, and remain shut all day on Thursday, December 25. Traders anticipate potentially volatile price movements amid lower trading volumes during this shortened week.
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