- Dow futures quote cautiously as the appetite for the risk of investors has decreased before the deadline of tariffs.
- The White House is expected to announce trade agreements with several business partners soon.
- The US Treasury Secretary, Scott Besent, warns that those nations will face reciprocal tariffs if they fail to an agreement.
Dow’s futures face a slight sales pressure before the opening on Monday after a prolonged weekend by a holiday. The actions of the United States (USA) quote down on a feeling of the average risk market amid the uncertainty surrounding global trade in the regressive account for the expiration of the 90 -day tariff pause on July 9.
At the time of writing, the futures of the S&P 500 are lowering 0.3% to about 6,260. Dow futures decrease 35 points and fall to about 44,800.
Investors are hurried to refuge assets, such as the US dollar (USD), since they doubt the success of the 90 -day reciprocal period of the US president, Donald Trump, which aimed to achieve bilateral trade agreements without affecting the ongoing commercial flow.
The US dollar index (DXY), which tracks the value of the dollar against six main currencies, reviews the weekly maximum around 97.45.
Until now, Washington has closed bilateral agreements with the United Kingdom (UK) and Vietnam, a limited pact with China, significantly less than what it promised after general reciprocal tariffs. The White House expressed confidence after announcing the tariff break that will seek to close “90 agreements in 90 days.”
Meanwhile, US Treasury Secretary Scott Besent has expressed optimism that Washington will sign several commercial agreements soon. “There is a lot of delay from the other side, so I would expect to see several great ads in the next few days,” Besent said in an interview with CNN during the weekend.
Besent has warned that the US will send letters to those nations, specifying tariff rates, which did not reach an agreement during the 90 -day tariff pause period. “President Trump is going to send letters to some of our commercial partners, saying that, if they do not advance, then, on August 1, they will return to their tariff level on April 2.
Dow Jones – Frequently Questions
The Dow Jones Industrial Avenge, one of the oldest stock market indexes in the world, consists of the 30 most negotiated values ​​in the United States. The index is weighted by the price instead of capitalization. It is calculated by adding the prices of the values ​​that compose it and dividing them by a factor, currently 0.152. The index was founded by Charles Dow, also founder of the Wall Street Journal. In recent years it has been criticized for not being sufficiently representative, since it only follows 30 companies, unlike broader rates such as S&P 500.
There are many factors that promote the Dow Jones Industrial Average (DJIA) index. The main one is the added performance of the companies that compose it, revealed in the quarterly reports of business benefits. The American and world macroeconomic data also contribute, since they influence investor confidence. The level of interest rates, set by the Federal Reserve (FED), also influences the DJia, since it affects the cost of credit, on which many companies depend largely. Therefore, inflation can be a determining factor, as well as other parameters that influence the decisions of the Federal Reserve.
Dow’s theory is a method to identify the main trend of the stock market developed by Charles Dow. A key step is to compare the direction of the Dow Jones Industrial Avenge (DJIA) and the Dow Jones Transportation Average (DJTA) and just follow the trends in which both move in the same direction. The volume is a confirmation criterion. The theory uses elements of maximum and minimum analysis. Dow’s theory raises three phases of the trend: accumulation, when intelligent money begins to buy or sell; Public participation, when the general public joins the trend; and distribution, when intelligent money abandons the trend.
There are several ways to operate with the DJ. One of them is to use ETF that allow investors to negotiate the DJ as a single value, instead of having to buy shares of the 30 companies that compose it. An outstanding example is the SPDR Dow Jones Industrial Avenge ETF (day). Future contracts on the DJ allow the specular operators about the future value of the index and the options provide the right, but not the obligation, to buy or sell the index at a predetermined price in the future. Investment funds allow investors to buy a part of a diversified portfolio of DJ values, which provides exposure to global index.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
