- Dow Jones futures anticipate a negative opening with the index falling more than 1%.
- Concerns about tariffs and caution of investors before the July NFP report are weighing on the demand for shares.
- The renewed fears of commercial tariffs have compensated the enthusiasm for the optimistic profits of technological giants.
Dow Jones’ futures point to a negative opening on Friday, since a new list of commercial tariffs of the US president Trump has compensated for the enthusiasm of investors for the optimistic profits of the US technological giants, while the market changes its approach to the Julio Non -Agricultural Plumbs Report.
The future Dow Jones index quote 1.05% lower at the time of writing, the same fall shown by the futures of the S&P 500 index, while the NASDAQ remains the largest loser with a drop of 1.25%.
Commercial tariffs harm the appetite of investors by shares
The president of the United States Trump ended the era of globalization on Thursday, signing an executive order to impose commercial tariffs on practically all nations with levies ranging from 10% to 41%, and taxes of 50% for copper, steel and aluminum exports. Investors are still cautious that Trump’s commercial policy will contribute to increase inflation and hinder economic growth.
This news has eclipsed the optimistic quarterly gains published by Amazon, Meta, Apple and Microsoft earlier this week, which feeds the confidence of investors in the growth potential of the artificial intelligence sector.
In the Data Front, today, all eyes will be placed in the US non -agricultural payroll report. Investors expect signs of a moderate cooling of the labor market to keep the hopes of a rate cut in September alive. A strong NFP reading would support the hard line posture of the Central Bank and send the downward actions.
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.
