Strong transport stocks act as green signal for some investors, others anticipate downturn

With transport stocks surging, some market watchers are hopeful that the current expansion period will continue despite downturns in the broader market earlier this year. This hope is rooted in Dow theory, which asserts that stock market trends confirm each other. According to the theory, a bullish transportation sector is an indicator of overall economic health because thriving manufacturers produce and ship more goods.

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