DJI: Dow Jones Ticks Up Ahead of Major Fed Decision

The 30-stock benchmark is higher by a mere 2% for the year, while its more volatile peers are blasting off.

The Dow Jones Industrial Average eked out a tiny 0.1% gain on Friday to cap a week of thin trading. Wall Street’s blue-chip index has been massively outperformed by its two peers – the S&P 500 and the Nasdaq. While the Dow is up just 2% for the year, the broad-based S&P 500 is up 12%, the tech-focused Nasdaq is higher by 27%.

So why that big of a difference? Firstly, big tech stocks were among the biggest losers when rates started pumping last year. Now, they are catching up, widening the gap between the value-focused Dow Jones and the other two indexes. And secondly, the artificial intelligence boom is powering megacap growth-focused heavyweights like Nvidia to record highs.

Up next is the Federal Reserve with its rate decision. To wrap up a two-day monetary policy event, Fed boss Jay Powell will hit the podium with the latest update on the daunted interest rate campaign. Traders are betting that central bankers will hold off on raising rates this time.