Dow Jones

Dow Jones

The Dow Jones fell but the Nasdaq 100 rallied on Monday as markets strongly priced in a Fed pivot in the fallout of SVB’s collapse. For now, markets are prioritizing a dovish Fed over a recession.

The Dow Jones Industrial Average, commonly referred to as the Dow, is a stock market index that measures the performance of 30 large companies listed on stock exchanges in the United States. It is one of the most widely followed equity indices and is often considered a barometer of the overall health of the US stock market.

The recent mixed reaction of the Dow Jones and Nasdaq 100 to SVB's collapse highlights the current market sentiment. While the Dow Jones experienced a decline, the Nasdaq 100 showed resilience and rallied. This divergence can be attributed to the market's anticipation of a Federal Reserve policy shift in response to the fallout. Investors are currently placing greater emphasis on a dovish Fed stance, which prioritizes accommodative monetary policies, rather than concerns of an impending recession.