Dow 30 Components, which include the Dow Jones Industrial Average (DJIA), the S&P 500 (SPX), and Nasdaq Composite (IXC), have all rallied more than 7 percent this year.
That’s the fastest rise since November.
The Dow, a bellwether index of the S &Ps technology, financial, and technology sectors, is now up more than 40 percent from its low of 23.21 in March 2018.
“The stock market is now on the right track and we are now seeing a rebound in the Dow.
In fact, we are seeing the market rise about 7 percent since the end of March.
So, that is encouraging and I would expect that trend to continue,” said Scott Batson, an analyst with Renaissance Technologies in Stamford, Connecticut.
Batson said he thinks the Dow could hit new highs again this year, though he said it might take longer than expected.
A Reuters poll found that more than half of investors expect the Dow to hit another record high this year and more than a third say they’re bullish on the S and P 500.
In the meantime, stocks in Europe and Japan are still down from the first half of 2017.
One big reason is the drop in energy stocks.
Last week, the Sirocco Group, a Swiss energy company, reported a decline in its earnings, a sharp drop that was the biggest in its history.
This week, Japanese oil giant Daewoo said it was cutting its oil output by 7.5 percent to 3.5 million barrels per day, and European oil giant Statoil said it would cut its output by 10 percent to 1.2 million barrels a day.
That leaves the S-and-P-500, which tracks the Dow industrials, below the 10,000 mark, for the first time since May of last year.
Despite the drop, analysts say that there are some bright spots for the stock market.
Markets Insider: In a recent article, the Financial Times called Dow’s 30 components the “gold standard of data.”
“Its a good example of the kind of data that can be used to build a portfolio, the data that we use to create portfolios, and how we make decisions about investments,” said Jeff Jaffe, an investment strategist at Riggs Capital Markets.
Jaffe said the S10 component, which measures the S+P 500 and S&s industrial index, has been the best performing component of the market since last September, and he sees it likely to continue to outperform the S500.
Another factor to watch for is how the Fed and the Trump administration will respond to a slowdown in oil production.
Both have been looking for ways to boost the economy and boost growth, and there is no sign that Trump’s policy is helping.
During a CNBC interview last week, Fed Chair Janet Yellen told the network that her policy was working and that she’s confident it will continue to do so.
However, Yellen did say that if there were “real signs that things are going to pick up, and they do pick up,” that would likely be a good time to raise interest rates.
Even if prices fall, stocks should rally again, and the S.&=&gt; Dow could be headed for a record high.
Follow Patrick Strickland on Twitter at @PWStrickland.