Dow Jones Down 350 Points After New High, Buyers Looking at Support for Entry
Dow Jones retreated on Monday, but the main trend is still bullish, so buyers are preparing to buy the dip at support zones.
Quick overview
- The Dow Jones Industrial Average fell 350 points, or -0.77%, after reaching a record high on Friday, but the overall trend remains bullish.
- Small-cap stocks underperformed, reflecting increased caution among investors towards growth-sensitive sectors.
- Only the Communication Services and Energy sectors posted gains, while Consumer Staples and Health Care experienced the largest declines.
- Market sentiment indicates uncertainty, with traders closely monitoring the Dow's ability to maintain support levels amid upcoming economic data.
Live DOW Chart
Dow Jones retreated on Monday, but the main trend is still bullish, so buyers are preparing to buy the dip at support zones.
Market Overview
The DOW Jones Industrial Average lost 350 points, or -0.77%, slipping after setting a fresh record high on Friday. The pullback leaves the index stalling just above prior resistance levels, which could now act as support if dip-buyers step in. Should support fail, moving averages below may be tested and could offer good entry levels at 44,600 and 44,100.
Dow Chart Daily – There’s Plenty of Support Below
The S&P 500 dipped slightly, closing down -0.43%, after struggling to stay in positive territory during the session. Meanwhile, the Nasdaq Composite briefly gained over 75 points but reversed to close modestly lower, marking the day as another failed attempt at extending upward momentum.
The Russell 2000 small-cap index underperformed, sliding nearly 1%, reflecting heightened caution toward growth-sensitive stocks.
Closing Levels for Major US Indices
- Dow Jones Industrial Average: -349.27 points (-0.77%) at 45,282.47
- S&P 500: -27.59 points (-0.43%) at 6,439.32
- Nasdaq Composite: -47.24 points (-0.22%) at 21,449.20
- Russell 2000 (Small-Caps): -22.75 points (-0.96%) at 2,339.17
🔹 Large-cap indices faced moderate declines, while small-cap stocks underperformed, reflecting investor caution in more growth-sensitive segments of the market.
Sector Performance
Only a handful of sectors managed to post gains. Communication Services and Energy edged higher, supported by selective buying and firmer commodity prices. On the downside, Consumer Staples and Health Care led the losses, a sign that traditional safe-haven plays are losing investor appeal. Utilities, Industrials, and Financials also saw notable weakness.
S&P 500 Sector Performance
- Communication Services: +0.44% (best-performing sector)
- Energy: +0.27% (supported by firmer crude oil prices)
- Consumer Discretionary: -0.13% (mild weakness)
- Information Technology: -0.09% (held relatively steady despite broader risk-off tone)
- Real Estate: -0.53% (dragged by higher rate concerns)
- Financials: -0.58% (banks under modest pressure)
- Materials: -0.62% (cyclicals softened with growth worries)
- Industrials: -1.03% (broad sector weakness)
- Utilities: -1.16% (heavier selling as defensive stocks lagged)
- Health Care: -1.44% (notable downside pressure)
- Consumer Staples: -1.62% (worst-performing sector)
🔹 Only two sectors—Communication Services and Energy—managed gains, while Consumer Staples and Health Care led the declines.
Market Sentiment and Outlook
The rotation out of defensives and small caps points to uncertainty among investors, even as the broader uptrend in large-cap indices remains intact. Traders will be watching whether the Dow can hold above its recent breakout levels, as upcoming economic data and Fed commentary could determine if this pullback deepens or sets the stage for renewed buying momentum.
Dow Jones Live Chart
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