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Dow 30 Stocks List: Ranked By Hedge Fund Bullishness Index

Hamna Asim
14 min read

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In this article, we discuss Dow 30 stocks ranked in accordance with the hedge fund bullishness index. If you want to skip our detailed discussion about the stock market performance, head directly to Top 10 Dow Stocks: Ranked By Hedge Fund Bullishness Index. 

Dow 30 is a stock index that takes into consideration the performance for 30 large-scale public companies. For many investors and economists, Dow 30 reflects on the performance of the United States economy. 

Over the past year, economists were skeptical about the US economy in 2023. In 2022, the consumer price index rose up to 9.1%. The Federal Reserve was expected to introduce an aggressive monetary policy to counter such rising levels of inflation. For its 2023 outlook, Goldman Sachs predicted the below-potential growth and the labor market to bring down inflation. Although Goldman Sachs forecasted a 35% chance of a recession within the next 12 months, this figure was adjusted to 25% in June 2023. 

Despite the challenges for this year, the stock market in July has showcased its best performance in 26 years. According to CNN, this surge was spearheaded by the performance of tech companies, such as Alphabet Inc. (NASDAQ:GOOG), Microsoft Corporation (NASDAQ:MSFT), and Apple Inc. (NASDAQ:AAPL). Following the latest buzz and hype around artificial intelligence, tech companies are big on innovation, research, and development for related applications. As per Refinitiv Lipper, over 80% of the 292 companies in the S&P 500 have reported higher earnings than the market consensus. As inflation gradually stabilizes, the market experts seem optimistic for a soft landing. Initially, the Federal Reserve had calculated a 71% probability for a recession during this year. Although the economy still faces recessionary pressure, the probability is not considered as high as initial estimates. In contrast to the estimates for 2023, the S&P 500, coupled with the Nasdaq Composite, experienced the 5th consecutive positive month in July. The S&P 500 rose over 19% during the first 7 months of 2023. In addition, the Dow Jones Industrial Average climbed by 7%, while the Nasdaq Composite grew by 44% by July this year. This can be attributed largely to the performance of tech companies. 

As per Forbes, the Federal Reserve’s ability to suppress inflation more than market expectations is the leading factor for such remarkable market performance. As of June 2023, the consumer price index had decreased to roughly 3%. While the Federal Reserve is targeting a long-term CPI rate of 2%, this decrease came quicker than expectations. Additionally, the labor market added over 209,000 jobs in June. In addition to this, the GDP growth rate was reported at 2.4% for the second quarter of 2023. Consequently, consumer discretionary products experienced the largest growth in earnings during the second quarter, with a 36% increase in the EPS for the same time last year. However, despite the performance of the stock market, analysts have not ruled out an increase in inflation and unemployment heading into 2024. 

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