The Dow Jones Industrial Average Index reached a new record high of 41,198 points Wednesday, closing 0.6% higher and extending its winning streak to six consecutive sessions in the green.
Blue-chip stocks, tracked by the SPDR Dow Jones Industrial Average ETF (NYSE:DIA), found a strong ally in July's seasonality. Just a year ago, the Dow Jones began a remarkable bull run of 13 consecutive sessions starting on July 10.
This year's Dow rally is distinguished not only by new record highs but by its outperformance relative to the tech sector.
Over the last six sessions, the Dow Jones has risen by 5%, while the tech-heavy Nasdaq 100 fell by 3.3%. Therefore, it has outperformed the Nasdaq 100 by 8.3 percentage points in the most recent six sessions.
To find another six-day period where blue chips outpaced tech by such a margin, we have to go back to July 2002.
Dow Jones Vs. Nasdaq 100
There is currently a "general enthusiasm about cyclical sectors like industrials and materials that tend to perform best in a growing economy," Joe Mazzola, director of trading and education at Charles Schwab. "Hopes for Fed rate cuts starting in September triggered a major rotation toward those sectors starting late last week."
"Dow Jones Industrial Average breaking out to new highs to suggest that the summer 2024 rally is getting healthier," Stephen Suttmeier, CFA, CMT.
Top 5 Blue-Chip Stock Performers Of Last 5 Sessions
| Name | Price Chg. % (5D) |
| UnitedHealth Group Incorporated (NYSE:UNH) | 14.43% |
| Caterpillar Inc. (NYSE:CAT) | 8.91% |
| The Home Depot, Inc. (NYSE:HD) | 8.11% |
| Dow Inc. (NYSE:DOW) | 7.16% |
| The Travelers Companies, Inc. (NYSE:TRV) | 6.47% |
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