There seems to be no end to the Dow Jones Industrial Average’s ascent. What is the cause of the historical resurgence of the blue-chip metric introduced more than a century ago?
The Dow increased on Wednesday, marking its best winning streak since 1987, with a 13th straight day of gains. If it closes higher on Thursday, it will be the first time the Dow has climbed for 14 straight sessions since 1897, roughly a year after the benchmark was established. The Dow has performed better than other markets during its recent run, rising 5%.
However, the S&P 500 and Nasdaq Composite indexes as a whole have not seen that momentum. Since the Dow’s streak began, both have only increased by 3%. The S&P 500 has dropped twice over that span, although there have been three losing sessions on Nasdaq.
There are several causes behind the Dow’s streak, but none may be more significant than waning recessionary fears.