Dow Jones Industrial Average shrugs off data, continues to recover footing

• The Dow Jones rallied 300 points on Monday as the index extends its rebound.
• Equities are recovering their stance after a recent plunge on geopolitical concerns.
• US Retail Sales figures from February recovered, but not by much.

The Dow Jones Industrial Average (DJIA) climbed around 300 points on Monday as equities continue to claw back ground after a recent downturn that saw major indexes inch toward correction territory. US economic data continues to hint at a possible slowdown looming ahead, but oversold equity markets are shrugging off the warning signs falling too far, too quickly over the last few weeks.

US Retail Sales rebounded to a tepid 0.2% MoM in February after January's plunge. Markets were hoping for a better showing from key retail activity results, with a median forecast of 0.7%. Data watchers will note that January's figure was also revised to a two-year low of -1.2%, and downside revisions will continue to plague the economic calendar as US data continues to worsen on the front end of the curve.

Despite a near-term rebound in equity markets, key indexes remain steeply lower in March, sparked by overarching tariff threats from the Trump administration. US President Donald Trump has played fast and loose with his constantly changing tariff threats, introducing a new level of policy friction that markets have yet to become accustomed to. Despite President Trump flat-out refusing to acknowledge a growing risk of recession at the hands of his trade policies, key comments from people within his administration have tipped their hands that Trump's team expect some "economic pain". However, the Trump administration's attempt to rebrand economic contraction as "resetting US markets" seems to have gone over rather poorly with investors.

Dow Jones news

The Dow Jones has extended into a second day of recovery gains, with the majority of the major equity index rising on Monday. UnitedHealth (UNH), Walmart (WM), and IBM (IBM) have all risen over 2% on the day. UNH rose back to $500 per share, Walmart climbed back over $85 per share, and IBM has reclaimed $250 per share. On the low end, Nvidia fell back 2.5%, dipping back below $120 per share as the tech rally continues to face difficulties.

Dow Jones price forecast

 The Dow Jones Industrial Average is seeking a technical recovery following a rapid rebalancing of investor expectations: the Dow Jones has climbed 300 points on Monday, adding further momentum to last Friday's 550-point gain. However, the key index remains steeply off of recent highs, declining over 3,300 points top-to-bottom over the last two weeks. 

Bidding pressure is pushing the Dow Jones back toward the 200-day Exponential Moving Average (EMA) at the 42,000 handle. The DJIA found a technical floor at the 41,000 key price level, but buyers remain at the low end of a particularly steep hole as the Dow trades 3,300 points below record highs set last November just north of 45,000.

Dow Jones daily chart