- The actions fall after a new turn in the tariff saga that includes greater general levies.
- Fed policies responsible are still divided on monetary policy decisions next month.
- Solid unemployment requests data in the US have contained market expectations on imminent monetary relaxation movements.
Dow Jones index futures anticipate a negative opening on Friday after Thursday’s positive session. Investor concerns that the highest tariffs announced by President Trump will increase inflation and affect growth are harming market feeling.
The future industrial average Dow Jones show a 0.52% hours before opening. Futures of the S&P index fall 0.5%, and futures of the Nasdaq technological index record losses of 0.44% at the time of writing.
The new tariff threats are hitting the appetite for risk
Trump announced a new lot of tariffs on Thursday, raising the levels to Canada to 35% and including the Eurozone, which is currently in negotiations with representatives of USA.
This announcement follows a plan to introduce a 50% tariff on all copper products, which will have a broad impact on the American industry and could lead to interruptions in the supply chain.
Meanwhile, the divergence among those responsible for the FED policies keep investors asking themselves about the bank’s feat cuts calendar. Waller and Daly reiterated their call to feat cuts in the coming months, while a more cautious Musalem suggested that interest rates should be maintained at the current levels until there is more clarity on the inflationary impact of tariffs.
In the macroeconomic front, the applications for unemployment in the US decreased against expectations at their lowest level in seven weeks, which highlights the resilience of the labor market and slows the hopes of any relaxation of monetary policy in July or September.
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.
