Year to date, the Dow, the S&P 500 and the Nasdaq Composite - have rallied 17.8%, 23.3% and 21.4%, respectively.Īt its current level of 36,052.63, the Dow is well above its 50-day and 200-day moving averages of 34,945.59 and 33,836.45, respectively. However, in 2021, market participants’ preferences have shifted from overvalued growth-oriented technology stocks to relatively undervalued cyclical stocks.Īs the composition of the Dow leans toward cyclical stocks, the index gained momentum in 2021. In 2020, the Dow had gained 7.3% compared with the S&P 500 and the Nasdaq Composites rallies of 16.3% and 43.6%, respectively.