Dow Forecast: A Rebound This Week to New Highs After the Pullback?
The Dow Jones bucked the market’s declining trend last week, managing a modest gain while tech-heavy indices came under pressure.
Quick overview
- The Dow Jones managed a modest gain last week, contrasting with declines in tech-heavy indices.
- Investor sentiment shifted sharply mid-week, leading to the largest daily drop since October 10.
- Concerns over AI investments and tech valuations resurfaced, but no new economic signals triggered the market slide.
- Friday saw volatility with a brief recovery, yet most indices ended the week flat.
Live DOW Chart
The Dow Jones bucked the market’s declining trend last week, managing a modest gain while tech-heavy indices came under pressure.
Market Recap: Momentum Breaks After Record Start
The week began on an upbeat note, with the Dow Jones marking a fresh all-time high. However, sentiment flipped abruptly by Thursday as selling pressure intensified across the board. Every major index finished notably lower, with tech and small-cap stocks absorbing the bulk of the decline. Although the DOW has slipped more than 1,000 points from its peak, the broader market uptrend remains intact, supported by key moving averages that continue to hold.
Dow Jones Chart Daily – The Trend Remains Intact 
Unexpected Drop Catches Investors by Surprise
The selloff marked the sharpest daily drop since October 10, adding an element of shock given the absence of any major catalyst. The swift reversal suggested that investor confidence may be more fragile than the recent rally implied. Even the news of well-known bearish investor Michael Burry reportedly closing out his short positions fed speculation that market participants believe the uptrend may be nearing exhaustion—despite no new economic signal to justify such pessimism.
Old Concerns Resurface—But Nothing New Triggered the Slide
Familiar themes weighed on sentiment: costly AI investments, stretched tech valuations, and uncertainty around the Fed’s timing for potential rate cuts. But none of these concerns were new. Markets had been aware of them even as stocks touched fresh highs earlier in the week. This reinforced the idea that Thursday’s decline was driven more by repositioning and nervous sentiment than by a change in underlying fundamentals.
Volatility Spikes Into Friday Before Markets Flatten Out
Friday brought more turbulence, with U.S. equities slumping sharply at the open before staging a full recovery within 90 minutes. Tech-driven FOMO briefly reignited momentum, but the late-day fade left most indices flat—both on the session and for the week. Remarkably, it was the first trading day since April 7 in which the Nasdaq fell at least 1.5% intraday but still managed to close in positive territory.
Weekly Closing Levels – Major Stock Indices
U.S. Markets
S&P 500
- Close: 6,734.11
- Change: -51.25 points
- Performance: -0.76%
Nasdaq Composite
- Close: 22,900.59
- Change: -454.26 points
- Performance: -1.95%
Dow Jones Industrial Average (DJIA)
- Close: 47,147.48
- Change: +52.42 points
- Performance: +0.11%
Russell 2000
- Close: 2,388.23
- Change: -63.52 points
- Performance: -2.59%
Canadian Market
Toronto TSX Composite
- Close: 30,326.46
- Change: +241.51 points
- Performance: +0.80%
Dow Jones Live Chart
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